Employee and Contractual Relationships

Contractor or Employee?

Have you ever wondered if you are employed or a business or treated as a separate contractor.

You would be surprised how many times we are asked that question by a client.

You normally look at if you have a contract, are you paid gross or nett of tax, is any superannuation paid on any earnings and other indicators.

Employee’s and independent contractors may seem to have similar roles and responsibilities in their day-to-day work.

An independent contractor is self-employed and can accept or refuse jobs and can set their own rates to charge.

A contractor will normally have greater control over the tasks that they do, and they normally provide their own equipment tools and more.

An employee on the other hand, works directly for a business and their duties are dictated by the employer and their Employment Contract.

Employees have greater protection and are covered by a variety of minimum standards and laws.

An employee is considered to have a contract of service, meaning to serve to their employer whereas an independent contractor provides contract for services.

In Hollis v Vabu Pty Ltd [2001] the substance of the working arrangement was a significant component in determining whether the worker was an employee or a contractor.

Should you be asked to become or an employee or you are not sure of your legal position and entitlements, give us a call on 4243 7855 or email reception@culletonlawyers.com.au to start a conversation.