When is a contractor not a contractor? Is an ABN enough?

IN BRIEF

Employment lawyers are constantly being told by their clients: "It's okay, he/she has an ABN".

Employers often presume, as the worker has the "magical" ATO-related number, the ABN, that somehow all employment obligations are absolved. Recent cases in relation to sham contracting and, generally, claims by employees have demonstrated over and over that this is not the case. It is actually very difficult to establish a legitimate contracting relationship between a business and another individual.

There is a subtle, but very meaningful, difference between whether a worker IS a contractor to your business or whether the worker IS LIKELY TO BE a contractor.

If you want to be certain that your employee is a contractor then we recommend that you closely consider the following indicators: