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Tuesday, November 25, 2025

Informal work arrangement: Is there an employment relationship? - HRD America

Worker received no payments or formal contract despite performing business duties

The Fair Work Commission (FWC) recently dealt with a general protections application involving a worker who claimed dismissal from a real estate company.

The case arose when the worker sought to challenge his alleged dismissal after performing work for a property investment business for one month without receiving payment or a formal employment contract.

The worker argued he had been employed as a buyer's agent and was dismissed in contravention of general protections legislation after expressing health concerns. He maintained that work tools, daily meetings, and regulatory listings demonstrated a genuine employment relationship entitling him to dismissal protections.

The employer contested the claim, arguing that no employment relationship existed as he was intended to work as an independent contractor on commission.

The real estate company maintained that without a formal contract, regular payments, or direct supervision from company directors, the worker had never achieved employee status.

Informal recruitment creates contractual ambiguity

The relationship began in June 2024 when the worker discussed joining the newly established buyer's agent business, with conversations indicating potential payments of $4,000 per client for concluded deals.

On 8 October 2024, he met company representatives at a cafe in what he described as an interview, though they characterised it as a "coffee chat."

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