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Did you know that treating your contractors as employees could cause serious legal issues?
Treating contractors in certain ways means they could be classified as employees. As a result, you could be liable to pay them employee benefits like superannuation. It’s important to get this distinction right and avoid being liable.
Advice from an expert lawyer on whether you're treating your employees and contractors in the proper legal ways
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Not knowing the difference between an employee or a contractor, or treating your contractors as though they are employees, could have huge consequences for your business.
The Fair Work Ombudsman is increasingly cracking down on “sham contracting”, which occurs when a business wrongly classifies its employees as contractors. This means the business could be liable to pay their workers the proper minimum wages, superannuation contributions and penalty rates that they’re entitled to. If you fall foul of these laws, you could face significant penalties.
This is a complex area, so it’s best to get a good lawyer’s advice on whether you’re treating your contractors and your employees in the appropriate manner.
There are a number of factors that affect someone’s classification as either an employee or a contractor. These include: the degree of control exercised by the employer over the hours worked and how the work is to be performed, the expectation of ongoing work, whether you provide tools/equipment, the method of payment and leave entitlement.
This is often not a straightforward area to navigate, so we’d advise you have a lawyer look at your particular circumstances to ensure you’re meeting your obligations.
As part of this package, our expert lawyers will examine your situation and provide you with advice as to whether you’re treating your employees and contractors appropriately under the law. They’ll also be able to give you tips on how to get this distinction right and what to do if you’re worried you’re not compliant.
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You’ll be guided through this process by our expert lawyers, who are Australian-qualified and were trained at leading law firms. They left the traditional corporate law sphere to help us make legal services better. Our lawyers specialise in technology, intellectual property, contract drafting, corporate and commercial law.