QUESTION 1: Ahmed vs Taxi Company
Ahmed is a taxi driver. He works for only one company. He has signed a contract with them
saying he is an Independent Contractor. He files his tax return stating he is an independent
contractor. He owns his own taxi and can choose to work when he likes. He has the company
name on the taxi and wears a uniform. He gets his fares through the company dispatcher.
One night,Ahmed has his throat cut by a passenger.Amazingly, he survives but is not able to
work for a number of months. The company sends him a nice fruit basket but says that since he
cannot work they will be terminating his contract.
1) IsAhmed an Independent Contractor OR an Employee?
After using the 5 steps technique in deciding if someone is an employee or independent
contractor and referring back to other cases,Ahmed is found to be an employee.
2) How would you determine this?
- Ahmed is required to report back to his dispatcher to receive fares, this shows that the
taxi company did have control over his activities asAhmed would not be allowed to go
and make his own rates to make extra money, which is very common with employees.
- Ahmed only works for one taxi company. This shows the durability and exclusivity
Ahmed has with the company. Ahmed does not have any other client and had no legal
entitlement to his customers. That is, the customers he drives around belongs to the taxi
company. Independent contractors would usually have more than one client they work
- The taxi company provided tools forAhmed as he visibly displayed the company’s logo
on his vehicle and wore the company uniform. In an independent contractor –
organization relationship, the organization should not have provided a company uniform
and endorsed there logo on the vehicle as if they owned it. In a customer’s eyes, the
driver would seem to be an employee not an independent contractor.
- Ahmeds services were integrated into the taxi companies business.Amends duties as a
taxi driver are central and is the main focal point in the companies operation, this was also settled in the case of Belton v Liberty Insurance Co. of Canada, 200