What's the difference between an employee and a contractor?

It is important to understand the difference between an employee and an independent contractor.

This is an area which has gained prominence in the Australian marketplace in 2014 and is particularly important for practitioners and SME business owners, both in terms of their own employment decisions and for advising clients.

Simply calling someone a "contractor" does not protect a principal from liability for employment entitlements, should the person not satisfy the legal tests for an independent contractor.

Applying an incorrect label can result in significant liability, including liability for wages and entitlements, breach of award and workplace relations legislation, liability for unfair dismissal, unpaid superannuation and payroll tax.

To learn more, check out the transcript below from the complimentary live expert chat.

Our expert panel:
Angela Petie, Special Counsel – McCullough Robertson Lawyers
Lyndon Garbutt, Senior Associate – McCullough Robertson Lawyers
 
Further resources:
Employees and contractors: Questions and answers
Employees and contractors: Fact sheet