The High Court of Australia has handed down decisions in two cases regarding the distinction between independent contractors and employees. The appeals in Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1 (Personnel Contracting) and ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 (Jamsek) were heard together and were both allowed, in judgments that continued the line of reasoning from the recent case of Workpac Pty Ltd v Rossato & Ors [2021] HCA 23.
In both cases, the High Court has held that there was a clear written agreement in place and it was thus appropriate to determine the nature of the relationship between the parties by an examination of the terms of the written agreement. It was not necessary to look further to how that contract operated in practice. Employers should therefore be mindful of the importance of the rights and obligations of the parties, and make sure these are clearly set out in the written agreement and accurately reflect the intended relationship.
A copy of the High Court's decision in Personnel Contracting can be found here, and the decision in Jamsek can be found here.
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