Employee or contractor?

Contractors run their own business and sell their services to others, unlike employees who work in someone else’s business.

Contractors — sometimes called independent contractors, sub-contractors or subbies — generally use their own processes, tools and methods to complete the work. They can delegate or subcontract some of the work if they need to, and can work for different clients at the same time.

Contractors have workplace rights and protections but have different responsibilities relating to insurance, taxation and superannuation.

Whether you are an employee or a contractor depends on many different factors. 

In general:

• independent contractors work for themselves and are their own boss
• employees work in someone else’s business – the business controls how, where and when they do their work, and pays them a wage

But you need to consider a range of factors when deciding whether someone is an employee or contractor. 

To help you decide:

• check the differences between employees and contractors on the Australian Taxation Office website – this will help you to work out your business’s tax and super obligations
• read the Fair Work Ombudsman’s independent contracting page for the differences for workers – you’ll also find information on minimum pay, working conditions and protections

If you’re still not sure, you should consider getting independent legal advice.