Introduction
Employers may be surprised to discover that their workers who
describe themselves as "contractors" may be viewed by the
courts and revenue authorities as actually being employees of an
employer. Similarly, thousands of contractors may be surprised to
discover that the way they describe themselves is completely at
odds with how the courts see them.
According to the 2011 Global Entrepreneurship Monitor
Report, 10.5 per cent of Australia's Adult population are
setting up or own a new business. Many of these businesses contract
out the personal services of their principals. However, when the
courts are asked to rule they are increasingly describing these
workers, not as independent contractors, but as employees. This
legal update considers the significant legal and financial
implications of these rulings and suggests practical ways for
purchasers of services to manage this risk.
