Contractor vs Employee

Legal Litmus Test.

Are your staff contractors or employees? Are you aware of the differences? When it comes to determining what category members of your agency fall under, it is essential you get it right. Because if not you could land yourself in legal and reputational hot waters with the Fair Work Commission, the court, your employees, and your clients.

Don’t just rely on what your agreement with your staff labels them. Your relationship with them will also play a significant part in determining whether they are contractors or employees - especially by the courts.

That’s why we’ve put together this Litmus Test so you can figure out if your team member is a contractor or employee by taking a deep dive into your working relationship with a quick, indicative test.

This Litmus Test will guide you through the major characteristics you should be looking at when determining whether your staff are contractors or employees, including:

  • Entitlements (eg. leave, super)

  • Method of payment

  • Client ownership

  • Insurance & financial risks

  • Expectations of work (eg. delegation)

  • Tools, licences, memberships etc.

  • Control over operations/work

Cover your a*rse, legally speaking, by figuring out your contractor/employee relationships the right way.

Download your FREE Legal Litmus Test

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Boring legal stuff: This litmus test is general information only and cannot be regarded as legal, financial or accounting advice as it does not take into account your personal circumstances. For tailored advice, please contact us. PS - congratulations if you have read this far, you must love legal disclaimers or are a sucker for punishment.