TN 7 (08-10)

RS 02101.066 Employer’s Right to Terminate Workers


IRS Revenue Ruling 75-41

A. Employee status regarding termination

The employer has the right to terminate an employee and exercise control over the threat of dismissal, causing the employee to obey the employer’s instructions. Sometimes, labor union contracts restrict an employer's right to terminate an employee.

B. Independent contractor status regarding termination

An independent contractor cannot be terminated as long as he or she produces a result that measures up to contract specifications.

C. Reference

Social Security Handbook, section 822 : Can you be fired?

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RS 02101.066 - Employer's Right to Terminate Workers - 08/18/2010
Batch run: 08/18/2010