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Meera Textiles Ltd. of Surat has a rule that no employee may also work for a competitor. Ravi, a salesman, signs a contract of service with the company. Which feature below most clearly shows that Ravi is an employee under a contract of service and not an independent contractor?

The company controls both what work Ravi does and how he does it. This right of control and direction over the manner of work is the key mark of a contract of service, whereas per-job pay, substitutes and multiple clients point to an independent contractor.

  1. AHe is paid a fixed amount for each job he completes
  2. BThe company controls not only what work he does but also how he does itCorrect
  3. CHe may hire others to complete his assignments
  4. DHe works for several firms at the same time

Explanation

Under a contract of service the employer controls both the work and the manner of doing it. Payment per job, freedom to hire substitutes and serving many clients are features of a contract for services, which describes an independent contractor.

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