01/06/2026
Employee or contractor? The answer isn’t always as straightforward as people think.
Many businesses assume someone is automatically a contractor because they have an ABN, specialist skills, or only work with the business occasionally.
But labels alone don’t determine the relationship.
Courts and regulators will generally look at the full working arrangement – including factors such as who controls the work, who bears the risk, how payment works, and whether there is an ongoing expectation of work.
Getting the distinction wrong can create more than administrative issues. Depending on the circumstances, it may affect obligations relating to tax, superannuation, leave entitlements and workplace laws.
Good business processes can help reduce uncertainty.
Clear agreements that accurately reflect how the relationship operates in practice, supported by proper documentation and record-keeping, can help businesses manage risk more effectively.
Read our article to learn more about the factors businesses should consider when determining whether a worker is an employee or an independent contractor. Link in comments.