Non-competition clauses have recently come under fire, as some Canadian courts and legislatures have rebuffed their application to independent contractors and employees. Courts are generally cautious about enforcing these types of clauses because they are seen as a restraint on trade. Further, given the power imbalance inherent in employment and contractor relationships, non-competition clauses are
The U.S. Department of Labor has recently unveiled proposed revisions to Wage and Hour Division regulations regarding employee and independent contractor classification under the Fair Labor Standards Act (FLSA). The stated intention of this change is to be more consistent with judicial precedent and practical implementation.
The proposed change was announced on October 13, 2022
Effective today, May 6, 2021, the Department of Labor’s (DOL’s) Trump-era independent contractor rule has been officially withdrawn. The Trump-era independent contractor rule, which never went into effect due to the change between presidential administrations, would have made it easier for companies to classify workers as independent contractors.
The Trump-era independent contractor rule expressly adopted and clarified the “economic realities test” for worker classification, and would have narrowed the focus of the inquiry to five distinct factors: (1) the nature and degree of the individual’s control over the work; (2) the individual’s opportunity for profit or loss; (3) the amount of skill required to perform the work; (4) the degree of permanence in the relationship between the individual and the potential employer; and (5) whether the work performed by the individual is part of an integrated unit of production. The independent contractor rule veered away from the classic application of the economic realities test applied by the courts by providing that the nature and degree of the worker’s control over the work and the worker’s opportunity for profit or loss were “core factors” that were to be given greater weight than the other factors. If both of those two “core factors” supported the same classification, there would have been a “substantial likelihood” that the classification is appropriate. Many viewed this as a substantial departure from the prior multi-factor “totality of the circumstances tests,” because if the “core factors” both pointed towards one classification, the analysis was likely to be complete and unaffected by the three remaining factors.
The Biden administration’s DOL has withdrawn the independent contractor rule for several reasons, including that:
Les plateformes de mise en relation (comme Uber ou Deliveroo), qui sont de plus en plus utilisées en France, font pourtant l’objet de nombreuses critiques, principalement fondées sur les conditions de travail des travailleurs indépendants qu’elles utilisent dans le cadre de leur activité.
Le Gouvernement français s’est donné pour mission d’encadrer l’activité de ces plateformes,
HMRC has published its latest consultation on off payroll working rules. As we have previously discussed (Global Workplace insider post – June 2018), the reformed off payroll rules which have applied in the public sector since April 2017 will be extended to the private sector from 6 April 2020. The consultation has raised
Following a Government-commissioned review of employment working practices in the UK which was published in 2017, a number of developments in employment law reform are expected over the coming months.
The Government published its latest proposals in December, covering a number of areas for change, some intended to improve the enforcement of employment rights, some
The term « gig economy » has come into use to describe segmented jobs governed by “apps”. Drivers, riders, cleaners rely on a “digital platform” to be put in contact with clients and their jobs do not seem to fall precisely within the parameters of laws designed to deal with the traditional subordination relationship of
German labour law follows the “all or nothing” principle: Labour law regulations presume an existing employment relationship between employer and employee. If no such relationship exists, protective labour law regulations cannot be applied (with a few exceptions e.g. in the case of managing directors of a “GmbH” (limited company)). Assessing whether an employment relationship exists
France makes a distinction between those individuals with an employment status and independent workers.
Under French employment law, an employee is defined as an individual who works pursuant to an employment contract (and under the subordination of the employing entity) and receives a salary in return for his or her services. Unlike an employee, a
An estimated 8 to 10% of Singapore’s existing workforce comprise freelancers and self-employed individuals.[1] This percentage is likely to increase with the expansion of the gig and on-demand economy. In recent months, there has been increasing public concern as to the ‘employment’ rights and legal status of these freelancers and self-employed individuals. Are they