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The distinction between independent contractor and employee is an important one in the United States, as the costs for business owners to maintain employees are significantly higher than the costs associated with hiring independent contractors, due to federal and state requirements for employers to pay FICA (Social Security and Medicare taxes) and unemployment taxes on received income for ...
Termination of employment or separation of employment is an employee's departure from a job and the end of an employee's duration with an employer. Termination may be voluntary on the employee's part (resignation), or it may be at the hands of the employer, often in the form of dismissal (firing) or a layoff. Dismissal or firing is usually ...
A contract of employment is usually defined to mean the same as a "contract of service". [1] A contract of service has historically been distinguished from a contract for services (contract for the supply of services). The differing terminology implies a dividing line between a person who is "employed" and someone who is "self-employed".
Most US states have adopted the at-will employment contract that allows the employer to dismiss employees without having to provide a justified reason for firing, although the variety of court cases that have come out of "at-will" dismissals have made such at-will contracts ambiguous. [6] Often, an at-will termination is handled as a "layoff".
In Canadian common law, there is a basic distinction as to dismissals. There are two basic types of dismissals, or terminations: dismissal with cause [21] and termination without cause. An example of cause would be an employee's behavior which constitutes a fundamental breach of the terms of the employment contract.
A termination for convenience clause, or "T for C" clause, [1] enables a party to a contract to bring the contract to an end without the need to establish that the other party is in default, for example because the client party's needs have changed, or in order to arrange for another party to complete the contract.
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