Contractor or Employee: Clarifying risk for employers

Clients are increasingly seeking our advice on issues applicable to workers engaged as independent contractors. In many cases the true nature of the relationship was that of employer and employee, and the "contractor" in question would be classified at law as an employee.

Where an employee is engaged as an independent contractor, there exists exposure to a number of potential claims against business owners, particularly with respect to the Fair Work Act 2009 (Cth), but also under:

• the Income Tax Assessment Act 1997 (Cth);
• the Superannuation Guarantee (Administration) Act 1992 (Cth);
• Workers Compensation and Work Health and Safety Legislation; and
• other employment related legislation such as those applying to long service leave.