The employment relationship
International Labour Conference, 95th Session, 2006 Report V(1)
The employment relationship
Fifth item on the agenda
International Labour Office Geneva
ISBN 92-2-116611-2 ISSN 0074-6681
First published 2005
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Formatted by TTE: reference Confrep\ILC95(2006)\Report V(1)-2004-09-0068-1 Printed in Switzerland
ATA
Contents
Page
Introduction ...................................................................................................................... 1
Chapter I. The employment relationship: Overview of challenges and opportunities........ 3
Evolution of the discussion at the ILO on the employment relationship ...................... 4 The employment relationship and the law .................................................................. 6 The employment relationship and workers' protection............................................... 8
Context of the lack of protection........................................................................ 8 Repercussions of the lack of protection............................................................. 9 Uncertainty with regard to the law ..................................................................... 11 Closing the gap .......................................................................................................... 15 Clarifying the scope of the law .......................................................................... 15 Adjusting the limits of the legislation ................................................................. 15 Balancing equity and adaptability...................................................................... 16 Ensuring compliance......................................................................................... 16
Chapter II. Trends and problems in regulation: A comparative analysis........................... 19
The law and the employment relationship .................................................................. 19 Substantive definitions ...................................................................................... 20 Descriptive definitions ....................................................................................... 21 Parties to the employment relationship ............................................................. 22
Determining the existence of an employment relationship.......................................... 24 The principle of the primacy of fact ................................................................... 24 Determination by law ........................................................................................ 26 Easing the burden of proof................................................................................ 28
Clarifying the scope of the employment relationship .................................................. 30 Defining the scope of the employment relationship ........................................... 31 Delineating the boundary between dependent and independent work............... 33 The combined approach ................................................................................... 35 Categorizing certain types of work .................................................................... 37 Extending the scope of legislation to equivalent workers .................................. 38
Developments in case law ......................................................................................... 38 Regulation of "triangular" employment relationships................................................... 42
Who is the employer (the provider)? ................................................................. 42 What is the position of the user? ....................................................................... 45 What are the worker's rights? ........................................................................... 47 Compliance and enforcement .................................................................................... 50
iii
The employment relationship
Page
Chapter III. A new instrument: The basis and possible content of a Recommendation .... 53 Structure of the questionnaire .................................................................................... 54 Content of the questionnaire ...................................................................................... 54 Section I: Form of the international instrument .................................................. 54 Section II: Preamble.......................................................................................... 54 Section III: Content of the instrument ................................................................ 55 Section IV: Other issues.................................................................................... 58
Questionnaire................................................................................................................... 59 Annex 1. Resolution concerning the possible adoption of international instruments
for the protection of workers in the situations identified by the Committee on Contract Labour ........................................................................................... 71 Annex 2. Resolution concerning the employment relationship ......................................... 72 Annex 3. Employment by status in employment and sex, latest year ............................... 78 Annex 4. List of referenced legislation ............................................................................. 85
iv
Introduction
1. The question of the employment relationship will be examined according to the single-discussion procedure established in article 38 of the Standing Orders of the Conference. The Office has accordingly produced the present summary report on law and practice, which covers a broad spectrum of existing law and practice in more than 60 ILO member States across different regions and different legal systems and traditions. The report provides a comparative analysis of the main developments and emerging trends based on a review of the legal texts, case law and other forms of regulation. It is accompanied by a questionnaire drawn up with a view to the preparation of a Recommendation. Governments are invited to give detailed replies to the questionnaire, on the basis of which the Office will prepare a final report in accordance with article 38, paragraph 2, of the Standing Orders of the Conference. This final report will contain a draft Recommendation for consideration by the Conference.
2. In accordance with the provisions of article 38, paragraph 1, of the Standing Orders, the present report must reach governments not less than 18 months before the opening of the 95th Session of the Conference in 2006. In accordance with paragraph 2 of the same article, the final report must be communicated to governments not less than four months before the opening of the 95th Session of the Conference. So that the Office has time to examine the replies to the questionnaire and prepare the final report, governments are requested to ensure that their replies to the questionnaire reach the International Labour Office in Geneva by 1 July 2005, or by 1 August 2005 in the case of federal countries and countries where it is necessary to translate the questionnaire into the national language.
3. The Office wishes to draw the attention of governments to article 38, paragraph 1, of the Standing Orders, which calls on them to consult the most representative organizations of employers and workers before they finalize their replies. The governments' replies should reflect the results of these consultations and indicate the organizations consulted.
4. This report is divided into three chapters as follows. Chapter I traces the evolution over the last decade of the discussions at the ILO on the employment relationship, including the discussions on "contract labour" in 1997 and 1998, the 2000 Meeting of Experts on Workers in Situations Needing Protection and the 2003 general discussion. It also summarizes the most pertinent issues identified by the 39 national studies conducted in 1999-2001. Chapter II provides an overview of trends and problems in regard to the manner in which the general aspects of the employment relationship are regulated in different countries. This is based on a comparative analysis of the relevant laws of more
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