WorkCover - New South Wales

There are several factors which need to be considered to distinguish an employee from a contractor. These factors are subjective and no single factor can be regarded as decisive. All factors must be weighed up to determine the issue.

A contractor is more likely to:

• be engaged to carry out a particular task using his or her own skill and judgement;
• employ others, delegate or sub-let work to another;
• be paid on the basis of a quotation for the job;
• supply his or her own tools and materials;
• carry on an independent business in his or her own name or under a business or firm name;
• be affected by PAYG tax arrangements.

An employee is more likely to:

• be subject to direction from the employer as to the work to be performed and the time and manner in which it is performed;
• be required to actually carry out the work;
• be paid on a time basis;
• have tools and materials supplied by the employer;
• work exclusively for a single employer;

NOTE: However, a person may be a contractor but still be a worker for the purpose of workers compensation.

As well, note that the status of a person for tax purposes bears no direct relationship to that person's status as a worker for workers compensation purposes.

For help, try our FREE  Worker Status Ruling Online Self Assessment Tool.