From: It’s not my fault although it might be: chiropractic practice and vicarious liability
Indicator | Employee | Independent contractor |
---|---|---|
Degree of control over work | Performs work, under the or right of direction and control of their employer, on an ongoing basis | Has a high level of control in how the work is done |
Other employers. | Employee works solely for the employer. [This generally refers to full-time employment – some employees may choose to work additional jobs]. | Worker performs work for others or is genuinely entitled to do so. |
Skill | The work does not involve a profession, trade or distinct calling on the part of the employee. | The work involves a profession, trade or distinct calling on the part of the worker. |
Equipment | Employer provides and maintains significant tools or equipment. | Worker provides and maintains significant tools or equipment. |
Hours of work | Generally, works standard, set hours set by the employer with an ongoing expectation of continued work. | Under agreement, the worker decides what hours to work to complete the specific task. |
Payment | Employee is paid by periodic wage or salary. | Worker provides invoices after the completion of tasks. |
Tax | Employer deducts income tax from remuneration paid. | Worker responsible for own tax affairs. |
Benefits | Employer provides paid holidays or sick leave to workers. | Worker does not receive paid holidays or sick leave. |
Termination | Can be discharged at any time for ‘good cause’. Good cause can include things like poor work performance, violating company rules and threats of violence. | May be terminated subject to the sub-standard or non-performance clauses in their contract. |
Unfair dismissal claim. | Can lodge an unfair dismissal claim. | Cannot lodge an unfair dismissal claim. |
Asset creation | The worker of creates goodwill or saleable assets for the employer’s business. | The worker creates goodwill or saleable assets for their own business. |
Business expenses | The employee does not spend a significant portion of their pay on business expenses. | The worker spends a significant portion of their remuneration on business expenses. |