On Monday 06 June 2011 11:23:40 david wrote:
> [some tests, which are relevant sometimes, deleted]
> 
> To make matters more complicated, different instrumentalities have
> different tests as to what makes someone an independent contractor, for
> instance workcover and the ATO.

There are about half a dozen different sets of tests, depending on what 
particular area of law you are dealing with. Off the top of my head I can think 
of the common law tests, the workers' compensation tests, the payroll tax 
tests, the alienation of personal income (income tax) tests, and the 
superannuation tests. Not all of these are strictly speaking tests of whether 
somebody is an employee, but are conceptually closely related.

In the case of the ATO, it has to use at least 3 different sets of tests in 
different contexts. So answering the question in one context (even within the 
same agency) does not necessarily give you the right answer for other 
contexts.

The Fair Work Act (which is where the sham contracting provisions are) uses 
the common law tests, which are also, unfortunately, the most difficult tests 
to 
apply. There is a large grey area, and different courts and tribunals (and 
judges and tribunal members) lean to a different side of the grey area. Fair 
Work Australia, for instance, tends to lean much more in favour of saying 
somebody is an employee rather than a contractor.

Regards, 
Troy Rollo 
Solicitor 
Parry Carroll 
Commercial Lawyers 
Direct: (02) 8257 3177 
Fax: (02) 9221 1375 
Switch: (02) 9221 3899 
E-mail: [email protected] 
Web: www.parrycarroll.com.au 

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