Employee vs independent contractor: an important dichotomy

The distinction between an employee and an independent contractor has long been the subject of judicial consideration, and indeed legal commentary.

Recently, the High Court delivered two judgements that marked a new approach to determining whether a person is an employee or an independent contractor.

The High Court held that "where parties have comprehensively committed the terms of their relationship to a written contract, the efficacy of which is not challenged on the basis that it is a sham or is otherwise ineffective under general law or statute, the characterisation of that relationship as one of employment or otherwise must proceed with reference to the rights and obligations of the parties under that written contract."