13/02/2022
Two important High Court rulings on the difference between an employee and an independent contractor were handed down this week.
The first, ZG Operations Australia Pty Ltd v Jamsek, emphasised the written terms of the contracts the 'employees' signed with the company, rather than the "substance and reality" of their daily work routine, and it was held that the 'employees' were in fact contractors. In summary, "If you've undertaken to do some work on the basis of a comprehensive set of written terms, it's those terms which will be the basis for determining whether or not you're an employee or an independent contractor, not the reality of your working arrangements". This is a change from previous Court decisions.
However, the second, namely Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd, which involved a 22-year old British backpacker, held that the 'employee' was an employee and entitled to Award rates of pay, because the employer was entitled to control who the man worked for and that, once the man was assigned to a client, he had to do what the client told him to do.
These decisions will have far-reaching implications. Read more:
The High Court says written contracts are crucial to determining whether you are an employee or an independent contractor.