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ARTICLE · 30 MARCH 2012

Who is an employee and who is a contractor?

The Federal Court recently had to consider whether door-to-door insurance salepeople were actually employees.

AustraliaEmployment and HR

Yes, that old chestnut

The Federal Court recently had to consider whether door-to-door insurance salesmen engaged by Combined Insurance were actually employees, despite contracts which asserted (strongly and repeatedly!) that they were contractors. Some of the engagements in question went back almost 20 years.

In what is becoming something of a trend, Justice Perram found that the various factual matters which have to be weighed up to decide this question could be pretty much summed up as "Were they really working in their own businesses? Or were they actually working in the business of the insurance company?"

He decided, emphatically, that they worked in the business of the insurance company and that it was a sham to regard to them as conducting their own businesses, even where they formally contracted to Combined through companies. Those companies were merely a way to receive payment, but it was the individuals who were actually engaged, as employees. As a

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