ABOUT THE CONTRIBUTOR

Mandy Cann
Mandy Cann Mandy has a long history in government where she spent 15 years in the Brisbane City Council and Qld Urban Utilities. Since leaving the public sector Mandy has been consulting in human resource management and industrial relations to small and medium business for the past 5 years. Working with small to medium clients has broadened Mandy's experience where she now has a good balanced perspective in professional consulting. Mandy holds a Bachelor of Commerce degree and a Masters in Employment Relations both from Griffith University. Mandy has practical working knowledge of the Fair Work Act and State Industrial legislation and can keep businesses compliant with the ever changing workplace laws. Mandy has spoken at industry conferences giving practical advice on effective people management practices in particular effective performance management systems.

Mandy Cann has written 22 article(s) for us.

Visit http://www.cannconsulting.com.au

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Independent Contractors or Employees?

August 10, 2012 | Mandy Cann

Find out what the very different roles of Independent Contractors and Employees are in your business.
Find out what the very different roles of Independent Contractors and Employees are in your business.

Distinguishing independent contractors from employees is important for businesses particularly with the spotlight on sham contracting arrangements where fines are applied to misrepresentation of the employment relationship.

It is generally considered that an employer/employee relationship is one ‘of service’ whereas a principal/independent contractor relationship is one ‘for service’.

An independent contractor typically contracts to achieve a result, where an employee contracts to provide their labour to enable the employer to achieve a result.

Most independent contractors run their own business, control their own working times and decide how and where they undertake work. Many independent contractors also advertise their business, provide their own tools and equipment and may pay others to carry out work on their behalf.

In contrast, employees are typically subject to controls on how, where and when their work is performed. They are paid regularly and cannot pay someone else to do their work for them.

Having or obtaining an ABN does not automatically mean a person will be classed as an independent contractor for the purposes of the independent contractor’s legislation.

Confused?  There are a list of factors to assist in assessing whether an independent contracting relationship exists. If you want more information just leave me a comment below or call me on 0401 665 981 and I will send you this list free of charge.