Independent contractors represent an important part of the Australian workforce and are common in many industries.
There is no clear legal definition that distinguishes between independent contractors and employees. As a result, the distinction between these two types of workers can be complex.
Nevertheless, the distinction is important in many contexts, including vicarious liability for work performed, taxpayer status and liability for workers’ compensation premiums. In recent times, the distinction has been very critical in disputes over employment entitlements and access to unfair dismissal remedies (which are available to employees, but not independent contractors).
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