Employee or Contractor Advice

Not knowing the difference between an employee and a contractor, or treating contractors as employees, can have serious consequences for your business.

The Fair Work Ombudsman is increasingly cracking down on “sham contracting”, which happens when a business wrongly classifies employees as contractors. This can mean the business is liable to pay workers the minimum wages, superannuation contributions and penalty rates they are entitled to.

If you breach these laws, you could face significant penalties. This is a complex area, so it’s best to get legal advice on whether you’re treating your contractors and employees appropriately.

A number of factors affect whether someone is classified as an employee or a contractor. These include the degree of control exercised by the employer over the hours worked and how the work is performed, the expectation of ongoing work, whether you provide tools or equipment, the method of payment, and leave entitlements.

This is not always a straightforward area to navigate, so we recommend having a lawyer review your particular circumstances to make sure you’re meeting your obligations.

As part of this package, our expert lawyers will review your situation and advise you on whether you’re treating your employees and contractors appropriately under the law. They can also give you practical tips on getting this distinction right and what to do if you’re concerned you may not be compliant.

We handle everything by phone, email and video call, so you never need to visit an office. Once you request a quote, one of our legally trained consultants will get back to you within one business day with a fixed-fee proposal. If you accept, we will pair you with a specialist lawyer who will guide you through the process. All documents are delivered digitally, and you can communicate with your lawyer in the way that suits you best. It is the same quality legal advice you would get from a traditional firm, just without the commute, hourly billing surprises or the formality.