5 questions answered - Engaging independent contractors

Contracting arrangements have become increasingly common as the 'gig economy' has gained momentum and the composition of Australia's workforce has shifted, with many workers seeking greater autonomy and flexibility. It's important for employers to ensure contractors are engaged appropriately to avoid the risk of claims from workers or prosecution by regulators.

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1. What factors will make a worker a contractor instead of an employee?

2. For Fair Work Act purposes, employees and contractors are distinguished using a multi-factor test that involves considering various questions including: How much direction or control does the company exercise over how and when work is performed? Who pays expenses and provides equipment required for the work? Is the worker allowed to delegate or perform work for others? Is the worker held out as a company representative, such as with a uniform or