An employee is hired by an employer to carry out work under an agreed employment contract.
An independent contractor or sub-contractor works for themselves and hires out their services. Independent contractors are not protected in the same way that employees are. They are responsible for paying their own tax, insurance and superannuation out of the money they earn.
When trying to work out whether someone is an employee or a contractor under law, it is the actual situation that is important, not the label of ‘employee’ or ‘contractor’ that is being used.
The Fair Work Ombudsman website has information to help tell the difference between an employee and an independent contractor.
If you are an independent contractor, the Australian Government’s Business website has information about your rights and a range of support services.
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