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Basic Question 1 of 6
A written or implied contract must exist between employee and employer. True or False?
User Contributed Comments 5
| User | Comment |
|---|---|
| kalps | An employee does not have to have a written contract, as long as the employer can direct the actions of the employee then he or she is classed as an employee, please note that a contracor is exemppt from certain actions such as getting other clients on the basis the he is independent |
| bobert | When would a person be considered an employee who is not contracted or paid? |
| stevens | being an employee does not have anything to do with money, as long as the employer can control and direct ...... |
| apiccion | @bobert, I believe it depends on the legal classification of the relationship. In my country an employer/employee relationship requires that the employer fulfill certain obligations to the employee such as deducting income tax from salary, providing due notice and/or compensation for termination, etc. A contract relationship could be a consultant/company relationship. Where the terms of the arrangement are largely determined by the written agreement between the company and the consultant. |
| mtsimone | In the US tax code, providing the tools to do the job and controlling how and when the work is performed defines and ER/EE relationship. To control only the work product (and presumably the delivery date) defines an independent contractor. As always, facts and circumstances will round this general outline out. |
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Tamara Schultz
Learning Outcome Statements
demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations;
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.
CFA® 2026 Level II Curriculum, Volume 6, Module 44.