Recent decisions of the Federal Court and Fair Work Australia have clarified the test that is applied to determine whether a worker is an employee or a contractor. These decisions have found that persons who had, for some time, been engaged as independent contractors were employees. Coupled with the increasing vigilance of regulators to stamp out the practice of sham contracting, these developments have put companies on notice that their independent contracting arrangements may be the subject of scrutiny.
It is essential, therefore, for companies to review their work arrangements with independent contractors and seriously consider converting independent contracting arrangements to employment arrangements in doubtful or marginal cases and, of course, in cases where the work relationship is clearly an employment relationship.
© DLA Piper
This publication is intended as a general overview and discussion of the subjects dealt with. It is not intended to be, and should not used as, a substitute for taking legal advice in any specific situation. DLA Piper Australia will accept no responsibility for any actions taken or not taken on the basis of this publication.
DLA Piper Australia is part of DLA Piper, a global law firm, operating through various separate and distinct legal entities. For further information, please refer to www.dlapiper.com
