Question

RQ has proposed six main criteria to determine whether a worker is an employee or a self-employed person. What are these criteria?

Answer 1

The six main criteria proposed by RQ to determine whether a worker is an employee or a self-employed person are the degree of control, the nature of the work, economic dependence, integration, investment, and risk of loss.

Step-by-step explanation:

The six main criteria proposed by RQ to determine whether a worker is an employee or a self-employed person are:

1. The degree of control: An employee usually works under the control and direction of the employer, while a self-employed person has more control over their own work.
2. The nature of the work: Employees typically perform work that is integral to the employer's business, while self-employed individuals provide services to multiple clients.
3. Economic dependence: Employees rely on the employer for a significant portion of their income, while self-employed individuals have multiple sources of income.
4. Integration: Employees are fully integrated into the employer's business, while self-employed individuals operate their own separate business.
5. Investment: Employees do not typically invest in the tools or equipment necessary for the work, while self-employed individuals may have their own business assets.
6. Risk of loss: Employees do not bear the financial risk of the business, while self-employed individuals are responsible for any losses incurred.

These criteria help determine the legal status and rights of workers in relation to employment and taxation.