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ARTICLE · 16 SEPTEMBER 2019

Employee Or Contractor – Which One Is It?

The Fair Work Commission (FWC) has once again confirmed that parties cannot alter the true nature of a relationship by putting a different label on it.

AustraliaEmployment and HR

The Fair Work Commission (FWC) has once again confirmed that parties cannot alter the true nature of a relationship by putting a different label on it.

"It would be hard to find a clearer case where the indicia were so strong as suggesting this to be an employment relationship and not a contractor relationship.  I think it is abundantly clear that this was a sham contracting arrangement and that is my finding.  It's not a difficult one to reach given the state of the evidence."

This decision serves as a warning to organisations of the risks of incorrectly classifying a relationship. In this decision the Commissioner indicated that he would refer the matter to the Fair Work Ombudsman (FWO) General Manager as he was concerned that the company may have a number of workers engaged on a similar arrangement to that of the Applicant.

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