Catton Roderick Lawyers Redcliffe

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Employee or Independent Contractor.

In determining whether a worker was an employee or an independent contractor in the past the Courts applied a “multi-factorial” approach where the terms of the contracts of employment were relevant but not decisive and other issues were considered including how the work relationship was actually conducted between the employer and the worker.
This position has now been substantially altered by the High Court in recent decisions.
The Court has now moved away from the multi-factorial test.
In circumstances where there is a valid contract of employment which sets out all of the terms of the party’s relationship the High Court determined that the focus should be exclusively on the rights and obligations contained in the contract itself rather than in the subsequent working arrangement.
In Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contract Pty Ltd the High Court determined that it was not necessary to conduct a wide ranging review of the parties details and that the proper approach was to consider the principles of contract law where the party’s rights were entirely contained within a written contract.
Except where the contract has been varied or waived either expressly or by conduct then how the working relationship plays out is not relevant in determining whether the worker is and employee or a contractor.
If you have any questions about your working relationship, please do not hesitate to contact this office.