Today, the High Court delivered two long-awaited decisions regarding businesses use of independent contractors.
In the first matter, a British backpacker who travelled to Australia on a working holiday visa was engaged by a labour hire company under a contract describing him as a "self-employed contractor". The worker worked on two construction sites operated by a client of the labour hire company, where he performed basic labouring work under the day to day direction and supervision of the labour hire company's client.
The CFMMEU (Construction, Forestry, Maritime, Mining and Energy Union) and the worker took the labour hire company to Court seeking compensation and penalties. At first instance, the judge and then the Full Court held that the worker was not an employee of the labour hire company.
In a huge win for the CFMMEU, the High Court overturned the Full Court's decision and held that the worker was an employee of the labour hire company.
While clear that the written terms of the contract will generally determine the relationship, the High Court found that on a proper analysis, the terms in the independent contractor agreement amounted to an employer/employee relationship, regardless of the "contractor" label used.
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