ARTICLE · 15 APRIL 2010

Distinguishing Between Independent Contractors, Employees and Deemed Workers:

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In determining the nature of the relationship between a party who engages another party to perform work and whether the relationship can be characterised as one of employer/employee or principal/independent contractor . . .

AustraliaEmployment and HR

Collin Ross Ralston v Peter Bell & Warren Smith t/as Xentex Patch & Grout & Anors

Judgment date: 31 March 2010

Supreme Court of NSW, Common Law Division¹

In Brief

In determining the nature of the relationship between a party who engages another party to perform work and whether the relationship can be characterised as one of employer/employee or principal/independent contractor the Court must consider the totality of the relationship between the parties.
A principal can discharge its duty of care by engaging a competent independent contractor responsible for its own system of work and the principal will not be liable for damage caused merely by the negligent failure of an independent contractor. However, in some circumstances a duty will be owed by the principal to use reasonable care to ensure that a system of work for one or more independent contractors is safe.

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