FWC clarifies that directing contractors on time, place, standards does not create an employment relationship
Businesses that engage independent contractors can continue to set operational expectations and impose certain requirements without those arrangements automatically becoming employment relationships, following a recent Fair Work Commission (FWC) ruling.
The decision, handed down in Williams v Mind Matters Sydney Pty Ltd [2026] FWC 1163, has been welcomed as a clarification for employers navigating the boundary between contractor and employee classifications under the Fair Work Act 2009.
The case involved a psychologist who claimed he had been dismissed from employment with Sydney-based psychology practice Mind Matters in February 2025.
The applicant argued the arrangement was an employment relationship due to the level of control exercised over his work, including supervision, the imposition of key performance indicators (KPIs), mandatory administrative tasks, and restrictions on client selection.
Mind Matters rejected the claim, arguing the psychologist had been engaged as an independent contractor under a formal Independent Contractor Agreement (ICA) signed in December 2023.
The FWC agreed. In dismissing the application, it found the practical reality of the arrangement was wholly consistent with the terms of the agreement.
On the question of supervision, the Commission found it could not be attributed to employer control.
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