Incorrectly treating your employees as contractors is against the law.  If your business is making this mistake, then you are breaking the law by:

  • Not meeting your tax and superannuation obligations; and
  • Denying your staff their employee entitlement.

The law in this area is strict in order to prevent businesses from illegally reducing their labour costs and gaining an unfair advantage over their competitors.

To properly document an independent contractor arrangement, it is crucial for an appropriate Independent Contractor Agreement to be created and signed.  It will set out the terms and conditions of the engagement and ensure that the rights and obligations of the parties are clear.

To ensure that the agreement properly creates an independent contracting relationship rather than a relationship of employer/employee, this guide will take you through the essential items to include in your independent contractors agreement.

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