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Section : Am I an employee or an independent contractor?
Domain : Human Resource Management
Classification : Not Identified
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Employees work for another person or business under a contract of employment in return for payment. They can be hired on a full-time, part-time, casual or fixed-term basis. Their pay and conditions are usually set by an award or enterprise agreement. Independent contractors work for themselves by providing services to another person or business. Generally, independent contractors set their own fees, will use their own equipment, choose the hours they work, decide how the work is done, and can work for more than one client at a time. Contractors don't have the same rights and obligations as employees. Whether you're a contractor or an employee depends on several factors, including:
- the amount of control the business has over how work is performed
- who bears financial responsibility and risk
- who supplies the tools and equipment
- the worker's ability to delegate or subcontract work
- how hours of work are set
- expectation of work continuing indefinitely. These factors are assessed looking at the terms of your contract and, in most cases, the practical reality of the relationship. For more information, visit fairwork.gov.au/contractors