Independent contractors & the common law

The Independent Contractors Act 2006 relies on the common law meaning of independent contractor. The common law is a set of legal principles, which have been developed through decisions in the courts. To determine whether a person is an independent contractor or an employee, a court considers a number of factors which look at the entire working relationship on balance.

Generally, an independent contractor works to achieve results and maintains a high level of discretion and flexibility as to how work is performed. However, the contract may set out precise terms around materials used and methods of performance, and still be a contract for specific services. These are only some of the factors courts take into account.

In making a decision, courts consider the individual circumstances of a case and provide recognition to the key characteristics of employees and independent contractors.

What to do...

More information...

Thanks for your feedback. If you have any ideas on how we can improve, we'd love to hear them.

Please provide your comments in the feedback form.

You might also be interested in