Independent contractors operate their own businesses, providing services to clients without the same rights and obligations as employees. They negotiate their own fees and conditions and can work for multiple clients simultaneously.
Starting 26 August 2024, a new method for determining whether a worker is classified as a contractor or employee will be implemented for constitutionally covered businesses. This includes a shift from the Start of Relationship Test to the Whole of Relationship Test, which assesses the practical nature of the working relationship.
Key factors for classification include the level of control the business has, financial responsibility, who provides tools, the ability to subcontract, work hours, and ongoing work expectations. Businesses must review existing arrangements by the deadline to comply with these changes.
Additionally, sham contracting—misclassifying an employee as a contractor—is illegal. Some contractors may also fall under regulated worker categories, which offer extra protections. Understanding these distinctions is crucial for both contractors and businesses to ensure proper rights and responsibilities.
https://www.fairwork.gov.au/find-help-for/independent-contractors
