May 2019 Q3 c.
ABA Venture was set up recently and John is an independent electrical contractor working for ABA Ventures for the past 3months under a contract that requires him to ensure that all electrical facilities are well maintained. Abena is a fresh graduate who has also completed level one of the ICAG professional programme and has been given a one year contract as a Cashier of ABA Ventures. Your firm is designing the conditions of service for ABA Ventures
Required:
i) List the FOUR (4) rights of employees. (4 marks)
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Section 10 provides the rights of workers to include the right to:
- work under satisfactory, safe and healthy conditions;
- receive equal pay for equal work without distinction of any kind;
- have rest, leisure and reasonable limitation of working hours and a period of holiday with pay as well as remuneration for public holidays;
- form or join a trade union;
- be trained and retrained for the development of skills; and
- receive information relevant to the work of the worker.
(Any 4 points)
ii) Indicate whether ABA Ventures will have obligations to pay Social Security on behalf of John and Abena who are both working at ABA. (6 marks)
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Abena’s Engagement
- ABA Ventures has an obligation to pay Abena’s social security because she is an employee by her working situation. The employee is controlled by their employer and regular salaries are paid, income taxes are deducted from source and social security is paid on behalf of the employee.
- Abena is expected to work at a specific place during specific hours on specific days and must present herself for work personally since she cannot send someone else as a substitute. Abena’s engagement is a contract of service and entitles her to social security contributions and payment.
John’s Engagement
- John’s engagement is under contract for service. Contract for services relates to a working situation where a person works on his own, runs his own business and will work for a person who requires his services. Such a person pays his taxes on his own, files his taxes and is liable for his own social security and provision of his own tools.
- John is not expected to work at a specific place during specific hours and he can send someone else to do the work. By John’s engagement, the only payment liability on ABA is to pay the contract sum per the terms of payment and deduct withholding tax.