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Paying Individual

stellalai
Member
Tue, 14 Nov 2017 06:15:17 PM  (Last updated: Wed, 15 Nov 2017 01:05:37 AM)

Hi,

I would like to know if you pay an individual person who does agent services/marketing services on behalf of a company, does that make the person an employee or staff?

There is no employment contract and no contribution of EPF/SOCSO. 

KL Siew
Administrator
Tue, 14 Nov 2017 09:20:56 PM

If you pay him a salary to market your products, I think he is an employee. If you intend for him to be your company's agent, draw up an agency agreement.

SuharinKL
Contributor
Wed, 15 Nov 2017 12:43:32 AM
Originally posted by stellalai on Wed, 15 Nov 2017 01:05:37 AM

Hi,

I would like to know if you pay an individual person who does agent services/marketing services on behalf of a company, does that make the person an employee or staff?

There is no employment contract and no contribution of EPF/SOCSO. 

These are some of the factors where the Court had deliberated whether a person is an employee or not:-

1) is there any employment contract?

2) is there any SALARY paid to the individual?

3) is there statutory contribution made by the company?

4) is the employee subject to the company's normal policy i.e. office hour, annual leave etc

5) is the person subject to a control or instruction of the company in discharging his obligations and duties?

The more YES for the above, the more probable the said individual be regarded as employee.

regards,

suharinsulaiman@gmail.com

stellalai
Member
Wed, 15 Nov 2017 01:05:36 AM
Originally posted by SuharinKL on Wed, 15 Nov 2017 12:43:32 AM

These are some of the factors where the Court had deliberated whether a person is an employee or not:-

1) is there any employment contract?

2) is there any SALARY paid to the individual?

3) is there statutory contribution made by the company?

4) is the employee subject to the company's normal policy i.e. office hour, annual leave etc

5) is the person subject to a control or instruction of the company in discharging his obligations and duties?

The more YES for the above, the more probable the said individual be regarded as employee.

regards,

suharinsulaiman@gmail.com

Hi,

Thank you for your reply. To answer your questions:

1. No employment contract, as he is more like a freelancer agent.

2. There is a monthly amount paid to the individual for his services.

3. No EPF or SOCSO or any other contribution for him to the government.

4. Not subject to office hours, annual leaves or any other benefits. But any sundry or entertainment expenses are borne by us.

5. No strict instructions or control. He is basically acting much like a marketing agent or broker to broke deals, to update us on latest information on market, and recommend us for any upcoming potential jobs.

Regards,

SL