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Role or function of an individual in an organization 

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Role or function of an individual in an organization 

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Of: The person must finish his/her own job.

For: The person can have assigned the job to other to finish the job.

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Of: A person who is under contract of service is under a company and it is an employee.

For: A person engaged via a contract for services is not an employee.

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-        A contract is a formal, legally binding agreement before a business and a self-employment individual.
-        It is usually between a business and a self-employed individual.

-        Example: A (customer) find B (self-employed) for doing advertisement design. B will have to bear with all the profit and loss due to the work.

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Control and superintendence (control test) 

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Control and superintendence (control test) 

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Of: The employer can guide the way to complete the work and when to perform the work. As long as it is within the scope of work duties, the employee shall not refuse any work provided by the employer.

For:  A self-employed person can refuse a job offered by an employer.

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Of: Employees must perform their duties personally and not allowed to use substitute staff to perform their duties

For: Can use substitute staff to perform tasks as long as the skill or experience of the substitute staff meet the job requirement

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Of: An employee may not work for anyone other than his employer during the required work period.

For: A self-employed person may be employed by many people

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Of : Employees have clear working hours.

For : Self-employed people do not have clear working hours. The only pre-requisite is that the task must be completed within the agreed time frame.

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Of: The employee must be under letter of engagement
For: constitutes self-employment

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Of : Employee uses tools provided by the employer to carry out.

For : Self-employed people use their own tools.

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Of: Employees only need to share profits but not take risks. They have a job guarantee.

For: Self-employed will bear all risks related to business success or failure

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Of: Employees will be paid a fixed salary and have the right to receive benefits such as STD deduction, Socso, medical, EPF, dental benefits and EPS.

For: Statutory benefits do not apply

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-        Employer-employee relationship that serves under terms and conditions of employment

-        Contract stated key employment terms, responsibilities and essential clauses, such as working hours and job scope

-        A contract of service is recognized when a person agrees to work for an employer as an employee and an employer agrees to recruit another as employee

-    Example: An employer posted a hiring post on vacancy, Ali went to interview and accepted by the employer. Thus, it forms a contract of service.

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Contract of service vs Contract for service

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Contract of service vs Contract for service