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ARTICLE · 14 FEBRUARY 2022

Can You Judge A Relationship By Its Contract?

Herbert Smith Freehills Kramer LLP
Explore more from Herbert Smith Freehills Kramer LLP

On 9 February 2022, the High Court delivered its decisions in CFMMEU v Personnel Contracting [2022] HCA 1 (Personnel Contracting) and ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 (Jamsek).

AustraliaCorporate/Commercial Law
Natalie Gaspar
Natalie Gaspar
Rommo Pandit
Rommo Pandit
Samara Cassar
Samara Cassar

Australia's courts largely say yes in two employment disputes but context still matters

The principles deciding if a worker is an employee or independent contractor are a perennial subject of employment disputes the world over. Some useful answers on the point came on 9 February 2022, when the Australian High Court delivered decisions in CFMMEU v Personnel Contracting [2022] HCA 1 (Personnel Contracting) and ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 (Jamsek).

The worker in Personnel Contracting was found to be an employee, but the owner-drivers in Jamsek were held to be contractors. So what lessons can we learn?

Contracts are king, but will be scrutinised

The High Court reaffirmed the importance of a written contract when ascertaining a worker's status.

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