Independent contractors

The guidance note on independent contractors provides authoritative insights into the complex legal framework governing contractor relationships in Australia. It clarifies distinctions between contractors and employees, highlighting critical implications under the Employee/independent contractor distinction and the Comparison of rights and obligations of employees and independent contractors. The note also explores the statutory regime under the Independent Contractors Act 2006 (Cth), including the definition of “services contracts” and the exclusion of state and territory laws.

Topics Covered

• Employee/independent contractor distinction
• Comparison of rights and obligations of employees and independent contractors
• Gig workers
• Independent Contractors Act 2006 (Cth) statutory framework
• General protections under Fair Work Act 2009 (Cth)
  
  

Essential Insights

• Assess contractor status using the common law multi-factor test beyond mere contractual terms.
• Evaluate how the Independent Contractors Act limits state laws that would otherwise confer employee rights.
• Consider the narrow but critical federal unfair contracts review process and its procedural deadlines.
• Recognise that certain state laws, such as superannuation and occupational health and safety, still apply.
• Understand the scope of “adverse action” under general protections affecting contractors and their employees.
• Anticipate key case law shaping the interpretation of unfair services contracts and contractor protections.