Employment relationships can be divided into two forms - the employee and the independent

contractor. The employee is hired under a contract of service and he is an independent

contractor under a contract for services. The distinction between the two is not always obvious

and it falls to the courts to decide on the issue of the nature of the employment relationship. The

distinction is important because it determines the statutory protection that applies. The rights and

remedies provided for under the Unfair Dismissals Acts only apply to employees under a contract

of service. Likewise of importance is that fact that employers are only vicariously liable for torts

committed by employees who are under a contract of service. Independent contractors under a

contract for services are responsible for their own torts.

A. Discuss the difference between a contract of service and a contract for services

(2marks)

B. Describe the difference between unfair and wrongful dismissal and available

remedies (3 marks)

C. List and discuss the at least 5 ways in which you distinguish between the

contract of service and the contract for services ( 5 marks)

D. Discuss the implications of the different types of contracts for all parties to the

contract (5 marks)

E. Discuss at least one test that was developed by the courts to differentiate

between a contract of service and a contract for service

(5 marks)