Checklist: Determining Whether Your Worker is a Contractor
Contractors are not employees, they conduct their own trade or business and contract with you on that basis. The legal status of the relationship between you and a worker is determined by:
- the nature of the work;
- the manner in which the work is performed; and
- what you and the worker both intend to be the basis of your relationship.
It is an offence under the Fair Work Act 2009 to represent that you have a contractor arrangement with a worker when you are actually in an employment relationship; referred to as sham contracting. Use this checklist to determine whether a worker is conducting their own business and therefore, what type of legal employment relationship you have with them.
We Also Recommend
Checklist: How to Determine Whether a Restraint Trade Clause is Enforceable