FREQUENTLY ASKED QUESTIONS (FAQ) EMPLOYMENT ACT 1955 (AMENDMENT) 2022

FREQUENTLY ASKED QUESTIONS (FAQ) EMPLOYMENT ACT 1955 (AMENDMENT) 2022

A. GENERAL

1. What is the main objective of the amendment to the Employment Act 1955?

The main objective of the amendment to the Employment Act 1955 is to :

• enhance and improve the protection and welfare of workers in this country;
• ensure that the labor law provisions in this country are in line with international standards set by the International Labour Organization; and
• facilitate Malaysia in negotiating trade agreements which often include clauses regarding minimum labor standards as one of the terms to be complied with.

2. What are the key provisions of the amendment to the Employment Act 1955?

The key provisions of the amendment to the Employment Act 1955 are as follows:

• Extension of the act’s coverage to all workers regardless of wage level;
• Increase of maternity leave from 60 days to 98 days;
• Granting of 7 days of paternity leave;
• Reduction of working hours to 45 hours per week;
• Separation of hospitalization leave;
• Provision for flexible working arrangements;
• Prohibition of discrimination in employment;
• Prohibition of forced labor;
• Requirement to obtain prior approval from the Director General of the Department of Labour Peninsular Malaysia before employing foreign workers;
• Prohibition of termination of female employees during pregnancy;
• Obligation to pay wages through financial institutions;
• Requirement to display a notice on the prevention of sexual harassment;
• Obligation for labor contractors to provide written contracts;
• Specification of salary calculation formula for incomplete months of work;
• Provisions related to “presumption of employee” and “presumption of employer”;
• Increase of the general penalty to RM50,000; and
• Other relevant minor amendments..

3. When does the amendment to the Employment Act 1955 come into effect?

The amendment comes into effect on January 1, 2023.

4. Are all these amendments to the Act required to be implemented immediately by employers?

Yes, Employers are obligated to implement all matters related to the amendment of the Employment Act 1955, effective from January 1, 2023.

B. COVERAGE OF THE AMENDMENTS TO THE EMPLOYMENT ACT 1955

5. Does this amendment apply throughout Malaysia?

No. This amendment only applies to Peninsular Malaysia and the Federal Territory of Labuan. As for Sabah and Sarawak, the Sabah Labour Ordinance Chapter 67 and Sarawak Labour Ordinance Chapter 76 remain applicable until amended.

6. Does this mean that all private sector employees, regardless of their wage level, are now protected and entitled to benefits under this act?

Yes. Through amendments to the First Schedule, all private sector employees, regardless of their wage level, will receive benefits and protection under this act.

7. Does this mean that high-salaried employees are also eligible for overtime pay?

Employees earning more than RM 4,000 per month (except for manual workers) are not eligible for overtime pay, rest day work pay, public holiday work pay, and termination benefits.

C. MATERNITY PROTECTION (PART IX)

8. Why is the maternity leave increased from 60 days to 98 days through this amendment, instead of 90 days or 100 days?

The maternity leave period of 98 days established through this amendment is in line with the International Labour Organization’s Maternity Protection Convention, 2000 (No. 183), which sets a maternity leave period of not less than 14 weeks (98 days).

9. If a female employee gives birth on or after the effective date of this amendment, is she eligible for a 98-day maternity leave?

Yes. Female employees who give birth on or after January 1, 2023, are eligible for a 98-day maternity leave if they meet the specified criteria.

10. With the repeal of section 44A of this act, does it mean that maternity protection no longer applies to all female employees regardless of their wage level?

Maternity protection provided under this act still applies to all female employees regardless of their wage level. The repeal of section 44A of this act was made because the First Schedule has been amended to allow the act to apply to all employees under certain conditions.

11. Through this act’s amendment, female employees on maternity leave are allowed to return to work early before the end of the 98-day maternity leave period. Does this mean that employers can instruct female employees on maternity leave to return to work early before the end of the 98-day maternity leave period?

No, unless requested by the female employee herself, approved by the employer, and certified as fit for work by a registered medical practitioner.

12. If eligible for maternity allowance, and a female employee agrees to return to work before the end of the maternity leave period, is the employer required to provide additional payment beyond the maternity allowance?

No, however, employers are encouraged to provide additional payment.

13. Can employers terminate the employment of a pregnant female employee?

Through this act’s amendment, employers cannot terminate the employment of a pregnant female employee or an employee suffering from an illness arising from pregnancy, except under the following circumstances :

• Termination due to a breach of the agreed employment contract under section 13(2);
• Termination due to misconduct under section 14(1); and
• Termination due to the employer’s business closure.

D. PATERNITY LEAVE (SECTION 60FA)

14. Why is a 7-day paternity leave introduced in this amendment?

Paternity leave is introduced to allow husbands to care for their wives and newborn children, as well as to manage matters related to childbirth such as birth registration.

15. What are the requirements to enable a male employee to qualify for 7 days of paid paternity leave?

The requirements to qualify for 7 days of paid paternity leave are as follows :

• the employee is married to his spouse;
• the employee has worked for the same employer for at least 12 months before commencing the leave;
• the employee must notify his employer at least 30 days before his wife’s expected delivery date or as soon as possible after the birth; and
• eligibility for paid paternity leave is limited to 5 occurrences of childbirth regardless of the number of wives.

16. If a female employee miscarries after 22 weeks of pregnancy, is her husband eligible for 7 days of paid paternity leave if he meets all other criteria?

Yes, because the definition of childbirth under section 2 of this act includes delivering a child that occurs after at least 22 weeks of pregnancy, regardless of whether the child is alive or dead.

17. Mr. Hamid has been employed with Company A for two (2) years. If Mr. Hamid’s wife gives birth on January 1, 2023, has Mr. Hamid met the requirement of being employed with the same employer for at least 12 months before commencing paternity leave?

Yes, because Mr. Hamid’s period of employment with Company A before the effective date of this act is considered for the calculation of the 12-month requirement.

18. Mr. Ahmad has been working for 5 years with Company C, and his wife is expected to give birth on January 28, 2023. If Mr. Ahmad only informs Company C about his wife’s pregnancy on the day the child is born, is he eligible for 7 days of paid paternity leave?

Yes, he is eligible because the requirement to inform the employer about his wife’s pregnancy can be fulfilled as soon as possible after the birth of the child.

19. When does paternity leave start, and can it be taken intermittently?

Paternity leave starts on the date of the employee’s wife giving birth, and it must be taken continuously for 7 days.

20. Are Rest Days and Public Holidays included in the calculation of the 7-day paternity leave?

Yes, because paternity leave is calculated continuously from the date of the wife’s delivery, including Rest Days and Public Holidays.

21. If an employee’s wife gives birth to five (5) twins, is it counted as one (1) birth or five (5) births?

It is counted as one (1) birth.

22. Mr. Sulaiman has two (2) wives and has been working with Company K for 3 years. If his first wife gives birth on September 10, 2023, and his second wife gives birth on October 15, 2023, is Mr. Sulaiman entitled to 7 days of paid paternity leave twice in the same year from Company K?

Yes, he is entitled because paid paternity leave is calculated based on the birth regardless of the number of wives, with a maximum limit of five (5) births.

23. If an employee has been granted paid paternity leave five (5) times for 5 births by Company A, is the employee still eligible for paid paternity leave if they start working with Company B?

No, they are not eligible because paid paternity leave is limited to 5 births only.

24. Prior to the enactment of this amendment, Company ABC had a collective agreement with the Union of Employees of Company ABC that provided for paid paternity leave of seven (7) days, limited to five (5) births. If Mr. Hadi has been granted 5 instances of paid paternity leave as per the terms of that collective agreement, is he still eligible for the paid paternity leave stipulated by this amendment after January 1, 2023?

Mr. Hadi is still eligible for the paid paternity leave as the paternity leave granted before the effective date of this amendment is not taken into account when calculating the maximum limit of five (5) births.

E. SICK LEAVE (SECTION 60F)

25. Why are the qualifications for sick leave and hospitalization leave separated through this amendment?

The separation of qualifications for sick leave and hospitalization leave allows employees to receive sufficient treatment and recovery time. With the separation of sick leave as amended, employees will receive a higher paid sick leave entitlement of 74 to 82 days per year (depending on length of service), compared to the previous 60 days per year.

26. What are the new eligibility durations for sick leave and hospitalization leave effective from January 1, 2023 ?

Effective from January 1, 2023, the new eligibility duration’s for sick leave and hospitalization leave are as follows :

Service Length	Sick Leave Entitlement	Hospitalization Leave Entitlement	Total Sick Leave Entitlement
< 2 years	14 days	60 days	74 days
2 – 5 years	18 days	60 days	78 days
> 5 years	22 days	60 days	82 days

.

F. WORKING HOURS (SECTIONS 60A AND 60C)

27. Why has the working hours been reduced from 48 hours per week to 45 hours per week through this amendment?

The reduction in weekly working hours is aligned with the International Labour Organization’s Recommendation concerning Reduction of Hours of Work, 1962 (No. 116), which advised countries practicing a 48-hour workweek to take steps to reduce working hours without reducing wages.

28. What is the employer’s responsibility when enforcing amendments involving the reduction of weekly working hours?

Employers need to amend the working hours stipulated in employment contracts to align with the amendment of the act and provide a copy of the amendment to the respective employees.

29. Can employers reduce employees’ wages following the implementation of the reduction in working hours from 48 to 45 hours per week?

No, they cannot.

30. Does the 45-hour workweek include break time?

No, break time is not included, provided that employees are free to use their time and movement during the break.

31. If there is an agreement between the employer and employee in the employment contract that break time will be considered as working time, can the employer compel employees to exclude break time from the calculation of working hours to facilitate the implementation of the 45-hour workweek adjustment?

No, they cannot.

32. How can employers implement the reduction of working hours from 48 hours to 45 hours per week?

The reduction of working hours from 48 hours to 45 hours per week can be implemented as follows :

• Reducing working hours on each day (within the week)

Example 1: Early Departure

Original Working Hours			New Working Hours
Day	Working Hours	Quantity	Day	Working Hours	Quantity
Monday	8.00am – 5.00pm	8	Monday	8.00am – 4.30pm	7.5
Tuesday	8.00am – 5.00pm	8	Tuesday	8.00am – 4.30pm	7.5
Wednesday	8.00am – 5.00pm	8	Wednesday	8.00am – 4.30pm	7.5
Thursday	8.00am – 5.00pm	8	Thursday	8.00am – 4.30pm	7.5
Friday	8.00am – 5.00pm	8	Friday	8.00am – 4.30pm	7.5
Saturday	8.00am – 5.00pm	8	Saturday	8.00am – 4.30pm	7.5
Sunday	Rest Day	–	Sunday	Rest Day	–
Weekly Total Hours		48	Weekly Total Hours		45
Break Time : 1.00 pm – 2.00 pm			Break Time : 1.00 pm – 2.00 pm

Example 2: Late Start

Original Working Hours			New Working Hours
Day	Working Hours	Quantity	Day	Working Hours	Quantity
Monday	8.00am – 5.00pm	8	Monday	8.30am – 5.00pm	7.5
Tuesday	8.00am – 5.00pm	8	Tuesday	8.30am – 5.00pm	7.5
Wednesday	8.00am – 5.00pm	8	Wednesday	8.30am – 5.00pm	7.5
Thursday	8.00am – 5.00pm	8	Thursday	8.30am – 5.00pm	7.5
Friday	8.00am – 5.00pm	8	Friday	8.30am – 5.00pm	7.5
Saturday	8.00am – 5.00pm	8	Saturday	8.30am – 5.00pm	7.5
Sunday	Rest Day	–	Sunday	Rest Day	–
Weekly Total Hours		48	Weekly Total Hours		45
Break Time : 1.00 pm – 2.00 pm			Break Time : 1.00 pm – 2.00 pm

• Reducing working hours on any day (within the week)

Original Working Hours			New Working Hours
Day	Working Hours	Quantity	Day	Working Hours	Quantity
Monday	8.00am – 5.00pm	8	Monday	8.00am – 5.00pm	8
Tuesday	8.00am – 5.00pm	8	Tuesday	8.00am – 5.00pm	8
Wednesday	8.00am – 5.00pm	8	Wednesday	8.00am – 5.00pm	8
Thursday	8.00am – 5.00pm	8	Thursday	8.00am – 5.00pm	8
Friday	8.00am – 5.00pm	8	Friday	8.00am – 5.00pm	8
Saturday	8.00am – 5.00pm	8	Saturday	8.00am – 1.00pm	5
Sunday	Rest Day	–	Sunday	Rest Day	–
Weekly Total Hours		48	Weekly Total Hours		45
Break Time : 1.00 pm – 2.00 pm			Break Time : 1.00 pm – 2.00 pm

33. Is employer consent required to reduce working hours from 48 hours per week to 45 hours per week?

No, it is not required. However, employers are encouraged to engage in discussions with employees.

34. Company A practices an 8-hour workday with 6 working days per week. To implement the reduction of working hours from 48 hours per week to 45 hours per week, can Company A reduce the working days to 5 days per week and extend the daily working hours to 9 hours?

Yes, it is allowed.

35. If an employer practicing a 6-day workweek reduces the daily working hours from 8 hours to 7.5 hours to meet the 45-hour weekly working requirement, how will the calculation of Ordinary Rate of Pay (ORP) and Hourly Rate of Pay (HRP) for overtime payment purposes be affected?

 ORP = Monthly Salary
                  26

HRP = ORP
          7.5 hours

 

36. If an employer practicing a 6-day workweek maintains the daily working hours at 8 hours (from Monday to Friday) and reduces the Saturday working hours to 5 hours to meet the 45-hour weekly working requirement, how will the calculation of Ordinary Rate of Pay (ORP) and Hourly Rate of Pay (HRP) for overtime payment purposes be affected?

 ORP = Monthly Salary
                  26

HRP = ORP
          8 hours

G. CALCULATION OF SALARY FOR INCOMPLETE WORKING MONTH (SECTION 18A)

37. What is the formula for calculating the salary for an incomplete working month as stipulated by this amendment?

The formula for calculating the salary for an incomplete working month is as follows :

Monthly Salary           x     Number of eligible days in
Number of days                 the period
in the salary period

38. Under what circumstances should the formula for calculating the salary for an incomplete working month be used?

The formula for calculating the salary for an incomplete working month should only be used in the following four (4) circumstances :

• When an employee starts work after the first day of the relevant month;
• When an employee’s service is terminated before the end of the relevant month;
• When an employee takes unpaid leave for a day or more in the relevant month; or
• When an employee is absent due to attending national service under the National Service Act 1952 [Act 425] or attending National Service Training under the National Service Training Act 2003 [Act 628] or complying with any written law related to national service.

 

H. SALARY PAYMENT (SECTIONS 25 AND 25A)

39. What amendments involve salary payment?

Through amendments to this act, salary payment through check or cash is only allowed upon the written request of the employee to the employer and with the permission of the Director General of the Department of Labour (JTKSM). Additionally, these amendments empower the Minister to authorize any other wage payment instruments provided under the Financial Services Act 2013 [Act 758] and the Islamic Financial Services Act 2013 [Act 759].

40. Does this amendment require prior approval from the Director General of JTKSM for salary payments by check or cash to employees other than domestic servants?

Yes. Salary payment through check or cash is only allowed upon the written request of the employee to the employer and with the permission of the Director General of JTKSM.

I. EMPLOYMENT OF FOREIGN WORKERS [SECTIONS 60K AND 60KA]

41. What are the new requirements for the employment of foreign workers stipulated through this amendment?

Through amendments to this act, any employer wishing to employ foreign workers must obtain prior approval from the Director General of JTKSM. Approval will only be granted if the employer fulfills the following conditions :

• There are no outstanding cases related to decisions, orders, or directives issued under this act; or
• There are no outstanding cases related to any convictions for offenses under this act [Act 265], Employees’ Social Security Act [Act 4], Minimum Standards of Housing, Accommodation and Amenities Act [Act 446], and National Wages Consultative Council Act [Act 732]; or
• The employer has not been convicted of any offenses under any written laws related to human trafficking and forced labor.

42. If an employer hires foreign workers without obtaining prior approval from the Director General of JTKSM, what penalty can be imposed?

Any employer found to have employed foreign workers without obtaining prior approval from the Director General of JTKSM, upon conviction, may be liable to a fine not exceeding RM 100,000.00 or imprisonment for a term not exceeding 5 years or both.

43. What is the employer’s responsibility when terminating the services of foreign workers?

Within 30 days from the date of termination of the services, the employer shall report to the Director General of JTKSM if the services of foreign workers are terminated :

• by the employer;
• due to the expiration of the employment pass issued by the Immigration Department; or
• due to repatriation or deportation.

44. Is the employer also responsible for reporting to the Director General of JTKSM when a foreign worker terminates their own service or absconds from their place of employment?

Yes. In such cases, the employer must report to the Director General of JTKSM within 14 days from the date the foreign worker terminates their own service or absconds from their place of employment.

 

J. EMPLOYMENT OF WOMEN (PART VIII)

45. Does the abolition of Part VIII (Employment of Women) of this act mean that, effective from January 1, 2023, employers no longer need to seek permission from the Director General of JTKSM if they intend to have female employees engaged in industrial or agricultural work between 10:00 p.m. and 5:00 a.m.?

Yes.

46. Does the employer still need to obtain the employee’s consent if they want to require female employees to work between 10:00 p.m. and 5:00 a.m.?

Consent must be obtained from the employee if the instruction to work during the night involves changes to the existing working hours.

 

K. CONTRACTOR FOR LABOR (SECTION 33A)

47. What additional obligations are imposed on the Contractor for Labor through the amendment to this act?

Through the amendment to this act, the Contractor for Labor who supplies workers to principals, contractors, or subcontractors is required to establish a written contract and ensure that the contract and related documents are available for inspection.

48. Is the failure to ensure that the contract or other related documents are available for inspection an offense under this act?

Yes. The Contractor for Labor can be fined up to RM 50,000.00 if found guilty of committing any of the following offenses :-

• Supplying workers without being registered with the Director General;
• Failing to ensure that the contract or contract-related documents are available for inspection; or
• Failing to keep a register of workers or ensure that relevant documents are available for inspection.

49. Is the Workers’ Minimum Standards of Housing and Amenities (Exemption) Order 2012, which exempts the application of section 33A to Contractors for Labor other than those in the agricultural sector, still applicable?

The Workers’ Minimum Standards of Housing and Amenities (Exemption) Order 2012 is still applicable until the order is revoked.

 

L. NOTICE ON SEXUAL HARASSMENT

50. What additional obligations are imposed on employers in addressing sexual harassment issues through the amendment to this act?

Through this amendment to the act, employers are required to display notices to raise awareness about sexual harassment.

51. Where should these notices be displayed?

Such notices should be displayed in areas of the workplace that are easily visible to the employees. For instance, in places where employees record their attendance, meeting rooms, dining halls, or break rooms.

52. What content should be included in these notices?

Any statement that can raise awareness about sexual harassment, for example, “Stop Sexual Harassment,” “Sexual Harassment is a Crime,” “Strict Action Will Be Taken Against Sexual Harassers.” The notice can also be in the form of an explanation or description of sexual harassment.

53. When is the obligation to display these notices effective?

The obligation to display these notices is effective from 1 January 2023.

 

M. GENERAL PENALTY (SECTION 99A)

54. Why was the general penalty increased from RM 10,000.00 to RM 50,000.00 through this amendment to the act?

Through this amendment to the act, the penalty for any person committing an offense or violating any provisions of this act or its regulations has been increased from a fine not exceeding RM 10,000.00 to a fine not exceeding RM 50,000.00 in order to enhance compliance with the act.

55. Does this updated penalty rate apply to ongoing cases in court?

No, it only applies to prosecution cases initiated after the effective date of this act.

 

N. DEFINITION OF APPRENTICESHIP (SECTION 2)

56. What amendment involves apprenticeship?

Through this amendment to the act, the definition of “apprenticeship” is introduced, and the definition of “apprenticeship contract” is amended.

57. What is the definition of apprenticeship and apprenticeship contract ?

“Apprenticeship” is defined as any person who enters into an apprenticeship contract. An “apprenticeship contract” is defined as a written contract made by an individual with an employer who undertakes to engage the individual to work and systematically train or provide systematic training in a trade for a specified period, which shall be a minimum of six (6) months and a maximum of twenty-four (24) months during which the apprentice is bound to work for the employer.

 

O. FLEXIBLE WORK ARRANGEMENTS (PART XIIC)

58. Why was a new section related to Flexible Work Arrangements (Part XIIC) established through this amendment to the Act?

This section was established to meet current needs for implementing Flexible Work Arrangements in necessary situations, such as to contain the spread of the Covid-19 pandemic.

59. What forms of Flexible Work Arrangements can employees request from their employers?

Employees can request any of the three (3) forms of Flexible Work Arrangements:

• Changes to working hours;
• Changes to working days;
• Changes to the workplace.

 

60. Can an employee apply for all three forms of Flexible Work Arrangements—changes to working hours, working days, and the workplace?

Yes, they can.

61. Can employers cease to provide rest days or annual leave after approving a Flexible Work Arrangements request?

No, they cannot, as Flexible Work Arrangements are subject to Part XII of this Act.

62. How can employees apply for Flexible Work Arrangements with their employers?

Employees need to make a written request to their employers, specifying the form of Flexible Work Arrangements they are applying for. Employees are encouraged to provide reasons for their request.

63. When can employees submit a request for Flexible Work Arrangements to their employers?

Starting from January 1, 2023.

64. What is the employer’s responsibility upon receiving a request for Flexible Work Arrangements from an employee?

Employers need to provide a response indicating whether the request is approved or rejected within 60 days from the date of receipt. This response should be given in writing, and if the request is rejected, the employer must state the reasons for the rejection.

65. Can employers grant approval for Flexible Work Arrangements for a specific period? For instance, approval granted for only 6 months?

Yes, they can.

 

P. DISCRIMINATION IN EMPLOYMENT (PART XIIC)

66. Why was a new provision related to discrimination established through this amendment to the Act?

The new provision related to discrimination established through this amendment is in line with the International Labour Organization’s Discrimination (Employment and Occupation) Convention 1958 (No. 111). With this new provision, the Director-General of the Department of Labour of Peninsular Malaysia (JTKSM) has the authority to investigate and decide on any disputes between employees and employers regarding matters related to discrimination in employment.

67. What forms of discrimination can be reported to the Department of Labour of Peninsular Malaysia (JTKSM)?

Any form of workplace discrimination can be reported by employees who are affected, such as discrimination based on factors like race, religion, gender, or political beliefs in terms and conditions of employment.

 

68. I attended a job interview for a vacancy at a company but was not successful because I couldn’t speak Mandarin. Does this fall under workplace discrimination?

No, as the protection provided through this amendment only applies to someone who has entered into an employment contract.

69. Does this protection against workplace discrimination apply to all employees regardless of salary thresholds?

Yes. This protection against discrimination applies to any employee who enters into an employment contract with an employer, regardless of salary thresholds.

 

Q. FORCED LABOUR (SECTION 90B)

70. What is the purpose of the new provision related to forced labour introduced in this amendment?

The new provision related to forced labour is introduced to prevent the practice of forced labour in the workplace.

71. What is defined as forced labour under this amendment?

Forced labour is defined as the employer’s act of threatening, deceiving, or coercing their employees to engage in any activity, service, or work and preventing them from leaving the place or area where the said activity, service, or work is carried out.

72. What elements need to be proven to establish the occurrence of forced labour?

To establish the existence of forced labour, all three of the following elements must be present :-

• The existence of threats, deception, or coercion against employees to perform any work, service, or activity;
• The presence of actions that prevent employees from leaving the workplace or the work area where the said work, service, or activity is conducted; and
• The actions described in (i) and (ii) above are carried out by the employer (including any person acting on behalf of the employer) against their employees.
  

   

R. PRESUMPTION AS TO WHO IS AN EMPLOYEE AND EMPLOYER (SECTION 101C)

73. Why is the new provision related to “presumption as to who is an employee and employer” introduced in this amendment?

The provision related to “presumption as to who is an employee and employer” is introduced to facilitate prosecution in cases where there is no written employment contract involving employees specified under Schedule First of this Act.

74. What elements can prove that someone is an employee in the absence of a written employment contract?

In proceedings for offenses under this Act, a person is deemed to be an employee if any one of the following elements exists:

• The manner of work is under the control or direction of another person;
• The working hours are under the control or direction of another person;
• Tools, materials, or equipment for performing the work are provided by another person;
• The work performed is part of another person’s business;
• The work is done solely for the benefit of another person; or
• Regular payment of wages is received for the work performed, and such payment constitutes the majority of the person’s income.
  

75. What elements can prove that someone is an employer in the absence of a written employment contract?

In proceedings for offenses under this Act, a person is deemed to be an employer if any one of the following elements exists:

• They control or direct another person on how to work;
• They control or direct another person regarding working hours;
• They provide tools, materials, or equipment to another person for performing the work;
• Work performed by another person is part of their business;
• Work performed by another person is solely for their benefit; or
• They make payments to another person in return for the work performed.