Call us
02 4861 2345
Send us an email
Get in touch

It’s All in the Contract

The High Court has recently provided clarity on determining if a person is a contractor or employee. 

The analysis is now by reference to the terms of the workplace contract.

Previously, the courts would characterise the workplace relationship by considering factors beyond the terms of the workplace contract. Such factors included the level of supervision, the right to delegate work to others, sick leave entitlements, holiday entitlements and income tax deductions (the totality principle).

The High Court’s decisions now specify that the contract and the relationship defined in the contract between parties is the primary determination tool. However, the indicia or totality principle still has a role to play where there is uncertainty. 

As such, employers should be aware of the importance of the parties’ rights and obligations and ensure that they are clearly stated in the workplace contract.

Like to know more? Contact us on 02 4861 2345 or email [email protected] to discuss.

Related Posts