Employee or Contractor?
There is no simple checklist for determining whether someone is an employee or a contractor for the purposes of the QBSA Act. There are a variety of factors that should be taken into consideration when assessing employment status.
Indications that a person may be an employee include the fact that they are paid a wage, receive benefits and entitlements (e.g. sick and recreational leave, long service leave), act under close direction from a contractor, do not supply own materials and do not employ other people.
As a guide an employee may be required to be personally licensed if responsible on behalf of a builder/contractor for:
Overseeing and directing the building work
Ensuring the work is of a competent standard i.e free of defects
Ensuring the work complies with the plans and specifications
A person may be considered to be a contractor rather than an employee where they have an ABN number issued by the Australian Tax Office, charge GST and lodge a business tax return, supply their own tools/equipment and materials for the job, do not receive benefits or entitlements, employ staff or subcontractors and are paid for completing a job rather that receive a weekly/fortnightly wage.
Legal advice should always be sought if there is any uncertainty about employment status.
The Australian Tax Office (ATO) has an online Building and Construction industry Employee/Contractor decision tool to assist employers in determining if workers are employees or contractors.
Related Pages Fact Sheets
Supervision Employee or Contractor?
Subtrade Contractors
