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ARTICLE · 07 MARCH 2022

Employee v contractor: Are your contracts iron-clad?

The cases show how critical a written contract is when deciding if a worker is an employee or an independent contractor.

AustraliaEmployment and HR

A common issue that continues to arise is how businesses classify their workers - i.e. are the workers independent contractors or employees?

There have been two recent decisions handed down by the High Court that confirm how critical a written contract is when determining whether a worker is an employee or an independent contractor.

First Case - Construction, Forestry, Maritime, Mining and Energy Union & Anor v Personnel Contracting Pty Ltd [2022] HCA 1

Relevant Facts and Earlier Decisions

The worker in question was a 22 year old backpacker hired by Personnel Contracting to provide labouring services on a construction site. The contract entered into by the worker described the worker as a "self employed" contractor. The work disputed this description and sought compensation on the basis that he was an employee.

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