Articles on: Self-employment

What is Supervision, Direction and Control (SDC)?

Supervision, direction and control (SDC) is a process used to evaluate the level of oversight and authority that an employer has over an individual in the context of employment. An SDC is used to determine the nature of a working relationship to ensure compliance with laws, such as in labor regulations or insurance policies. Here's a breakdown:

1 - Supervision: Refers to the oversight and guidance provided by a higher authority to ensure the tasks are being preformed correctly. It typically involves monitoring employees' performance and providing feedback.

2- Direction: Involves the guidance or instructions given by the employer or manager on how work should be completed. It could include the assignment of tasks, setting expectations, and making sure the work aligns with organizational goals.

3- Control: Refers to the authority an employer has over the work process, including decision making power, setting work hours, providing resources and determining the manner and method in which the work is done.

In legal and employment contexts, assessing these elements can help determine of someone is classified as an employee or an independent contractor, which affects taxes, benefits, and legal responsibilities.

Updated on: 17/01/2025

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