Who is an independent contractor?
An independent contractor is a person that runs their owns business and provides their services on a contract basis to others. They will generally operate as a sole trader with an ABN and invoice for their work however some independent contractors will operate through a company with an ACN.
A contractor will typically control how they perform their work, set their own rate of pay, set their own hours of work, advertise their services to the world at large, maintain their own tools and equipment and operate from their own premises. A contractor will not usually receive superannuation, annual leave or paid personal leave, unless they set these amounts aside for themselves.
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The lawyers at Jewell Hancock Employment Lawyers provide a range of services to independent contractors. These include:
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Start by getting legal advice. If you’ve been misclassified, you may be entitled to back pay for minimum wages, leave, superannuation, and other benefits.
Under the Fair Work Act, it’s unlawful for a business to knowingly misrepresent an employment relationship as an independent contracting arrangement. There are also penalties for pressuring someone to become a contractor.
Even if you agreed or signed a contract, you can still challenge it if the true nature of the relationship is that of employment. The court or tribunal will examine the real substance of the arrangement not just the agreement made between the parties.
Independent contractors are not protected from unfair dismissal because they are not employees. However, if the relationship has been misclassified and is actually an employment relationship, you may be protected from unfair dismissal. The Fair Work Commission will conduct this analysis, usually as part of a jurisdictional hearing.
Before making any unfair dismissal application it is always important to obtain sound legal advice as to whether you have been genuinely engaged as an independent contractor or whether a sham contracting relationship has been established.
