Self-Employed Person

To avoid unnecessary dispute, it is important for the employee and employer to clarify their mode of cooperation and relationship before entering into a contract. There are 3 factors to distinguish an “employee” from a “contractor/self-employed person”.

First one, as the control, who decides on the matters of recruitment and dismissal of workers? Who pays for the workers' wages and in what ways? Who determines the production process, timing and method of production? If the answer is employer, it is an employment relationship and vice versa.

Second, they should consider the ownership and provision of factors of production. The employers provide the tools and equipment, the work place and materials. That means it is an employment relationship and vice versa.

Also, economic consideration is the one of the factors. If the employers carry on the business for their employers, are liable for any risk of loss, it is an employment relationship and vice versa.

As a result, the company sweated the employee through the false self-employment contract. It ignored the protection to employee such as employment ordinance, employment compensation ordinance and mandatory provident fund schemes. For example, the company default the rights and interests of the employee, and compensate employee for injuries suffered at work, including the sickness allowance.

The employer should bear the business’s social responsibility and have to employ the employee under the protection of employment ordinance. If they avoid the responsibility, the employees should take a step forward to pursue the basic benefits, but not standing with folded arms to their interest due to make a living.