Explain the tests used to distinguish a contract of service from a contract for services, and why the distinction matters.

1. 1 · Open in two lines. An employee works under a contract of service; an independent contractor under a contract for services.
2. 2 · Define both with examples. A supermarket cashier (employee); a painter hired for one job (contractor).
3. 3 · The tests.
   • Control test: what and how.
   • Integration test: part of the organisation or outside it.
   • Multiple test: all factors (Ready Mixed Concrete).
4. 4 · Why it matters. EPF, ETF, gratuity, leave, termination protection and Labour Tribunal remedies apply to employees; vicarious liability; tax deducted from salary.
5. 5 · Types of employment in brief. Permanent, probationary, casual, temporary, fixed-term, seasonal, part-time, apprentice, agency.
6. 6 · In Sri Lankan business. Manpower agency workers: the agency, not the client firm, is usually the legal employer.
7. 7 · Close in one line. Courts look at the reality of the relationship, not the label.

Scoring tip: Name the three tests in order and give one case for the multiple test.