The Never Ending Argument - Independent Contractor or Employee

There is no statutory definition of "employee" or "independent contractor", therefore Australian courts have used the common law test – that is, a test which goes through a series of indicia, to try to ascertain whether a particular relationship is one of employment or an independent contract for services.

By way of example, the factors considered in the common law test include whether the putative employer exercises control over the manner in which the work in question is performed, whether the worker pays for their own tools, the description the parties have given to the relationship, whether the worker advertises to the world at large and whether income tax is deducted from payments made to the worker.