Employees And Contractors & Paid Parental Leave - IELTS Reading Answers & Explanations
From IELTS Simulation Tests General Training Reading Test 1 · Part 2 · Questions 14–28
Reading Passage
Read the text below and answer Questions 14–22.
Employees and Contractors
An employee is someone who performs work under a contract of employment. Identifying who is, or is not, an employee has become an increasingly disputed area, with a number of different factors to be considered. Non-employees may be 'independent contractors' or 'sub-contractors' and are employed under a contract for services or even as agents representing a client business. The legal consequences of being an independent contractor are significantly different to those for employees. Only an 'employee' can be covered by an award¹ or make a workplace agreement. However, some cleaners, outworkers and some drivers of public passenger vehicles who might ordinarily be considered independent contractors are deemed to be employees under the Fair Work Act.
The rights and obligations of employees are very different to those who are self-employed. To distinguish between employees and independent contractors, the courts take into account a number of factors to determine what the real nature of a particular work relationship is. These factors may include:
Control over work—generally an employee works as directed by the employer whereas a contractor has a greater say in how the work is to be done.
Payment—employees are usually paid on the basis of an hourly rate or a salary. Contractors are more often paid for a required outcome, with less regard for time.
Work injury—contractors are responsible to insure themselves against injury but employees are not.
Risk—employees generally do not bear in a direct way the risk of financial loss incurred by the business for which they work. Contractors have a chance of profit, and also the risk of loss.
Sub-contracting—an employee cannot assign or delegate the work to others whereas a contractor is typically permitted to do so.
Tools and equipment—contractors may supply special equipment or tools to do the job.
Income tax and superannuation—employers usually pay these for their employees whereas contractors make their own arrangements.
______________
Read the passage below and answer Questions 23–28.
Paid Parental Leave
If you are a working parent expecting a child after July 31st, the information below about Paid Parental Leave concerns you.
From 1st August, the first national Paid Parental Leave scheme will start. It's a new entitlement for working parents, funded by the government.
Taking time away from work for a new baby is a common part of working life. Paid Parental Leave is designed to help parents spend time with a new baby and also to help employers retain skilled staff.
Eligible working parents of children born or adopted on or after 1st August may get 18 weeks government-funded pay at the National Minimum Wage to help them care for a new baby.
Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible. You must have worked at least 330 hours (just over one day a week) for 10 of the 13 months before your new baby arrives. You can have up to an 8 week unpaid break between two working days and still be eligible. You can earn up to $100,000 a year (individual salary) and still be eligible.
Usually the mother must apply for Paid Parental Leave. If you are eligible, you can transfer some or all of the pay to your partner (he needs to be eligible too). The scheme gives families more options to balance work and family.
You can claim up to three months in advance, and your pay can start any time you choose from when your child is born or adopted. It will be paid in one continuous period from the start date and must all be taken with the first year after the birth or adoption. You are encouraged to apply early.
Eligible parents can receive Parental Leave pay at the same time, before or after other employer-provided paid leave or entitlements. The existing minimum entitlement to 12 months unpaid parental leave for long-term employees is unchanged.
From 1st August, employers must provide Government-funded Parental Leave pay through their usual pay cycle to eligible employees who have been with their business for at least 12 months. Other eligible parents will be paid through the Family Assistance Office.
For further information visit the website or call the appropriate number below:
www.ppl.govt.com
Parents 01800 4321
Employers 01800 1211
Questions
Questions 14–22 Matching Features
Classify the following as
A. contractors
B. employees
C. employers
Questions 23–24 Two Choices
Choose TWO letters, A–E.
Questions 25–28 True / False / Not Given
Do the following statements agree with the information given in the passage on the previous page?
Write
TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this
Answers & Explanations Summary
| # | Answer | Evidence | Explanation |
|---|---|---|---|
| Q14 | B | Payment—employees are usually paid on the basis of an hourly rate or a salary Contractors have a chance of profit, and also the risk of loss |
Excerpt/Passage Explanation: The passage explains that employees get money through hourly pay or salaries, while contractors are the ones who can earn business profits. Answer Explanation: The answer means that workers who receive an hourly wage or a fixed salary instead of making business profits are called employees (B). Reason For Correctness: The correct answer is B because the passage explains that employees are typically paid an hourly rate or a regular salary, whereas contractors take financial risks and have the opportunity to make a profit. Therefore, people who earn wages or salaries rather than profits are classified as employees. |
| Q15 | C | Income tax and superannuation—employers usually pay these for their employees whereas contractors make their own arrangements | Excerpt/Passage Explanation: The passage explains that bosses (employers) normally handle and pay income tax for the people who work for them (employees), while contractors must handle their own taxes. Answer Explanation: The answer "C" means employers. Reason For Correctness: The correct answer is C because the text states that employers usually pay income tax and superannuation for their workers (employees). Therefore, the people who pay tax on behalf of other people are employers. |
| Q16 | B | Control over work—generally an employee works as directed by the employer whereas a contractor has a greater say in how the work is to be done | Excerpt/Passage Explanation: The passage explains that an employee does tasks the way their boss tells them to do them, while a contractor has more power to choose how the work gets done. Answer Explanation: The answer "B" means "employees". Reason For Correctness: The correct answer is B because the passage explains how work is controlled. An employee simply follows orders and "works as directed by the employer", while a contractor "has a greater say" (more choice and control) in how the task is done. Therefore, employees have less responsibility for deciding how the work is carried out. |
| Q17 | B | Tools and equipment—contractors may supply special equipment or tools to do the job | Excerpt/Passage Explanation: The passage explains that contractors often bring their own tools and equipment for their work, meaning regular employees do not have to provide their own work gear. Answer Explanation: The answer "B" refers to employees. Reason For Correctness: The correct answer is B because the passage states under the "Tools and equipment" section that contractors may bring or provide their own special tools and equipment to do a job. By contrast, people who do not provide their own tools or gear are employees. |
| Q18 | C | Payment—employees are usually paid on the basis of an hourly rate or a salary | Excerpt/Passage Explanation: The passage explains that employees receive money calculated by the hour or as a fixed salary, which means employers are the ones paying by the hour. Answer Explanation: The answer "C" refers to employers, who are the bosses or companies that pay their workers based on the number of hours worked. Reason For Correctness: The correct answer is C because the text states under the "Payment" section that employees are usually paid on an hourly rate or a salary. Since employees are the ones receiving this payment, the employers (the bosses or companies they work for) are the people who pay them by the hour. |
| Q19 | B | Sub-contracting—an employee cannot assign or delegate the work to others whereas a contractor is typically permitted to do so | Excerpt/Passage Explanation: The passage explains that an employee is not allowed to give their work duties to someone else, whereas a contractor usually has permission to do so. Answer Explanation: The answer "B" refers to employees. Reason For Correctness: The correct answer is B because the passage states that an employee cannot pass their work on to other people (sub-contract or delegate), while a contractor is allowed to do so. In other words, employees do not have the freedom to hire or get others to do their job. |
| Q20 | A | Only an 'employee' can be covered by an award¹ or make a workplace agreement | Excerpt/Passage Explanation: The passage explains that only people classified as employees have the right to be protected by an award or a workplace agreement, meaning contractors do not get these rights. Answer Explanation: The answer is A (contractors). Reason For Correctness: The correct answer is A because the passage states that only employees can be covered by an award or enter into a workplace agreement. This means independent contractors cannot receive the benefits of these collective workplace agreements. |
| Q21 | A | Contractors are more often paid for a required outcome, with less regard for time | Excerpt/Passage Explanation: The passage explains that contractors are usually paid for finishing the final work or goal rather than the amount of time they spend working. Answer Explanation: The answer 'A' means that contractors are the people who receive payment for completing a job (the end result) instead of being paid by the hour. Reason For Correctness: The correct answer is A because the text explains the difference in payment methods between employees and contractors. The passage states that employees get paid by the hour or through a regular salary, while contractors get paid for a 'required outcome' (the end result) with 'less regard for time' (rather than counting working hours). |
| Q22 | B | An employee is someone who performs work under a contract of employment | Excerpt/Passage Explanation: The passage explains that an employee is defined as a person who does their job under an employment contract. Answer Explanation: The answer "B" means that people who work under an employment contract are employees. Reason For Correctness: The correct answer is B because the text explicitly defines an "employee" as a person who carries out work under a contract of employment. In contrast, contractors work under a contract for services. |
| Q23 | — | — | |
| Q24 | C / D | Eligible working parents of children born or adopted on or after 1st August may get 18 weeks government-funded pay at the National Minimum Wage to help them care for a new baby You can earn up to $100,000 a year (individual salary) and still be eligible If you are eligible, you can transfer some or all of the pay to your partner (he needs to be eligible too) |
Excerpt/Passage Explanation: The passage explains that working parents with newly adopted children qualify for the payment. It also notes that an individual can earn up to $100,000 to be eligible, and the payment can be shared with a father (partner). Answer Explanation: The answer choices C and D mean that parents who adopt a baby and a father who makes under $100,000 per year can both qualify for Paid Parental Leave. Reason For Correctness: The correct answer consists of C and D. The text shows that Paid Parental Leave is available for parents of children who are either born or "adopted", which makes option C correct. Furthermore, it explains that a worker can earn up to "$100,000 a year" and still qualify, and mothers can transfer the pay to their eligible male partner ("he"), meaning a father earning less than $100,000 is entitled to the payment, making option D correct. |
| Q25 | FALSE | You can claim up to three months in advance, and your pay can start any time you choose from when your child is born or adopted | Excerpt/Passage Explanation: The passage states that parents can apply for the leave up to three months before the arrival of the child, but the payments will only begin from the moment the child is born or adopted. Answer Explanation: The answer is FALSE because parents cannot start receiving the money before the baby is born; they can only apply early, and payments begin after the birth or adoption. Reason For Correctness: The correct answer is FALSE because the text distinguishes between when you can apply (claim) and when you can actually start receiving payments. You can submit an application up to three months before the baby arrives, but the payments can only start from the time the baby is born or adopted. Therefore, the statement saying employees can start getting the leave pay up to 3 months before birth is incorrect. |
| Q26 | TRUE | must all be taken with the first year after the birth or adoption | Excerpt/Passage Explanation: The passage explains that parents must finish using all of this paid leave before the child finishes their first year of life (reaches 12 months of age). Answer Explanation: The answer TRUE means that it is correct that workers cannot get this payment after their child turns one year old (12 months old). Reason For Correctness: The correct answer is TRUE because the text clearly states that the leave payment must be completely taken within the first year after the child is born or adopted. Therefore, once the child turns 12 months old (one year), parents cannot receive this benefit anymore. |
| Q27 | NOT GIVEN | You can claim up to three months in advance, and your pay can start any time you choose from when your child is born or adopted. It will be paid in one continuous period from the start date and must all be taken with the first year after the birth or adoption. You are encouraged to apply early | Excerpt/Passage Explanation: The passage states that parents are advised and encouraged to submit their application early, but it does not say that not applying early will cause them to lose their leave. Answer Explanation: The answer NOT GIVEN means that the passage does not provide enough information to know whether workers will miss out on their leave payments if they do not apply early. Reason For Correctness: The correct answer is NOT GIVEN because the passage only mentions that people can claim up to three months in advance and that they are "encouraged to apply early". It never states that parents will lose or miss out on their Paid Parental Leave if they apply later. |
| Q28 | TRUE | Eligible parents can receive Parental Leave pay at the same time, before or after other employer-provided paid leave or entitlements | Excerpt/Passage Explanation: The passage means that parents who qualify can get their government parental leave money at the exact same time as any paid leave given by their workplace. Answer Explanation: The answer "TRUE" means that the statement accurately reflects what is written in the text. Reason For Correctness: The correct answer is TRUE because the passage clearly states that eligible parents are allowed to receive government-funded (state-paid) Parental Leave pay at the same time as paid leave provided by their employer. In the text, "Parental Leave pay" refers to the state-funded benefit, and "employer-provided paid leave" refers to employer-paid leave. |