Am I an Employee or a Self-Employed

• You are not financially liable for any losses of the payer's business resulting from any breach of obligations of the contract between your payer and its clients.
• You are not responsible for operating expenses of the payer's business.
• You have no capital investment in the payer's business.
• You are normally not in the position to realise a business profit or loss.

• You are financially liable if the obligations of the contract are not fulfilled.
• You pay the hired helpers.
• You may perform a substantial amount of work from your own workspace (i.e. premises that are not provided by the payer), hence you incur expenses relating to the operation of the place (e.g. rental cost and utility bills).
• You incur on-going business fixed costs regardless of whether work is currently being performed or not.
• You have capital investment in the business.
• You can negotiate the price or unilaterally set the price for your goods or services.
• You can manage expenses to maximise your net earnings.

• You are paid a regular (fixed hourly/ weekly/ monthly) wage.
• You get overtime pay or bonus payment.
• You may receive a commission payment in addition to your regular wage.

• You are paid a fee on a per-job basis. You have the right to negotiate with the payer the exact amount you would be paid for.

Note: Some self-employed like lawyers are paid on an hourly basis.

• You take instructions from another person who directs you as to how, when and where the work is to be carried out. The overall work environment between you and the payer is one of subordination.
• The payer can move you from task to task and determine the method to be used to do your work.
• Your working hours are specified.
• You are usually not allowed to sub-contract your work to another person (i.e. you do not hire and pay another person to do your work).
• Training on how to do your work is usually provided.
• You may provide suggestions to the payer but the payer has the final word.

• You do not have anyone overseeing you.
• You control your own hours of work in fulfilling the job obligations.
• You can accept or refuse work from the payer.
• You may not have to perform the services personally. You are free to hire other people to do the work you have agreed to undertake at your own expense. The payer typically has no control over whom you hire.

• You need to obtain permission from the payer if you wish to do work for other payers.

Note: Some employees can work for more than one employer at any one time.

• You can provide the same services to more than one person/ business at the same time.
• You advertise and maintain a visible business location. You are available to work in the relevant market.

• The payer supplies most of the tools and equipment required by you to do your work. The payer is also responsible for repair, maintenance and insurance costs.
• The payer retains the right of use over the tools and equipment provided to you.

• You are responsible for the costs of repair, insurance and maintenance to the tools, equipment and machinery.
• You typically make significant investments in the tools and equipment required to do the work, and therefore retain a right over the use of the assets.

• You are entitled benefits that are normally only offered to employees.
• For example, employer's contribution to CPF, medical and vacation leave, medical reimbursement, group accident and health insurance, etc.

• You do not receive any protection or benefits from the payer.
• You provide your own medical and insurance coverage. You are required to contribute to your own CPF Medisave account.
• You are required to pay employer's CPF contribution to your helpers.