English education materials.

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Reference no: EM132230627

ABC Limited (‘ABC’) is a company in Hong Kong selling English education materials. Alex has been engaged by ABC since 2008 as an education consultant to promote the sales of education materials to clients. Alex signed an agency agreement (‘the Agreement’) with ABC in 2008 in which it is stipulated that Alex is not an employee and is not entitled to receive any benefit which ABC provides to its employees.

Alex is required by the Agreement to act and observe any directions, rules or regulations that might be issued by ABC from time to time. Alex’s promotion and marketing campaigns have to be done with the consent or the approval of ABC. Aside from that, Alex enjoys great freedom at work, and he can adopt his desired promotion methods. Alex’s working hours, working days and sales targets are highly flexible.

ABC does not provide work to Alex and he has to look for his own business and clients. ABC provides Alex an office space, computer, telephone, photocopying and fax machine. Alex shoulders the costs of most of the necessary tools for his job, including name cards, name lists, booth fees, secretary salary, gifts for clients, mobile phone and stationery. Alex received no fixed salary and the commission he receives each month depends on the sales he made. ABC does not bear any of Alex’s MPF contribution, tax or insurance.

ABC terminated the Agreement with Alex last week. Alex is demanding that ABC provide payment in lieu of notice for termination of employment, paid annual leave and long service payment.

a. Discuss how the courts decide whether someone is an independent contractor or an employee. (350-400 words)

b. Based on your answer in part (a), explain with reasons whether Alex will be considered to be an independent contractor or an employee. (350-400 words)

c. Critically evaluate why it is important to distinguish a contract of service from a contract for service. (200 -250 words)

Reference no: EM132230627

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