{"id":5461,"date":"2018-06-24T05:37:52","date_gmt":"2018-06-24T05:37:52","guid":{"rendered":"https:\/\/paceadelaidelegal.com.au\/tips-for-distinguishing-independent-contractors-from-employees\/"},"modified":"2018-06-24T05:37:52","modified_gmt":"2018-06-24T05:37:52","slug":"tips-for-distinguishing-independent-contractors-from-employees","status":"publish","type":"post","link":"https:\/\/paceadelaidelegal.com.au\/tips-for-distinguishing-independent-contractors-from-employees\/","title":{"rendered":"Tips For Distinguishing Independent Contractors From Employees"},"content":{"rendered":"

Independent Contractors vs Employees?<\/h4>\n

When an employer considers the cost of labour they may find they ask themselves, independent contractors vs employees? It is important to protect to distinguish between employees and independent contractors in order to protect your business.<\/p>\n

For more information, please call us on 8410 9294 or send an email via this form<\/a>.<\/p>\n

To reduce costs such as wages, tax, superannuation and WorkCover levies, many businesses look to engage independent contractors rather than employees. However despite the best intentions of the business, workers are often incorrectly engaged as independent contractors, which exposes business owners to legal claims brought by the worker, the ATO, WorkCover and or Fair Work Australia.<\/p>\n

Generally, an independent contractor will operate under a contract for services<\/em> with a principal, whereas an employee operates under a contract of service<\/em> with an employer.<\/p>\n

There is no clear legislative definition for an independent contractor. The key factor in determining the working relationship is \u2018control\u2019.\u00a0 Where a business retains control over how the work is performed, it is more likely that the relationship will be considered that of employment.<\/p>\n

Other factors that assist in determining whether a worker is an employee or an independent contractor are as follows:<\/p>\n