IPA FE Subject A sample Question 60

Relationship of direction and orders — under worker dispatching, the client company directs the worker's daily work but does not employ the worker.

Worker dispatching under Japan's Worker Dispatching Act joins three parties:

• •Dispatching company and worker: employment contract relationship; the dispatching company employs and pays the worker
• •Dispatching company and client company: worker dispatch contract relationship; the dispatching company sends the worker to the client
• •Client company and worker (the thick line): relationship of direction and orders; the worker does the client's work under the client's instructions, with no contract between them

Answer (c)

Why not others:

• •(a) — under a contract for work the contractor completes the work under its own direction, and the orderer may not direct the contractor's workers; directing them is disguised contracting
• •(b) — the employment contract is between the worker and the dispatching company, the thin vertical line
• •(d) — the worker dispatch contract is between the dispatching company and the client company, the thin diagonal line

Key rule: In dispatching, the employer and the one who gives instructions differ: the dispatching company employs, the client company directs; in a contract for work the contractor both employs and directs.

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