Contractors run their own business and sell their services to others, unlike employees who work in someone else’s business. Sometimes they are called ‘independent contractors’, ‘sub-contractors’ or ‘subbies’.
Contractors are hired to do a set task or tasks based on certain terms within a contract. Contractors generally use their own processes, tools and methods to complete the work. They can delegate or subcontract some of the tasks if they need, and can work for a number of different clients at the same time.
Contractors have different workplace rights and protections to employees. They also have different responsibilities relating to workplace safety, insurance, taxation and superannuation.
That is why it is important to understand the differences between contractors and employees.
If you aren't sure if you are an employee or contractor, you can use our online Independent contractors decision tool.
If you are a contractor, you should know: