Recent case examines what truly defines an employee-employer relationship
15 Apr 2025
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The Fair Work Commission (FWC) recently dealt with a case examining whether a worker was an employee or independent contractor.
The case centred on a female worker who claimed she was dismissed in contravention of the Fair Work Act 2009 (the Act). In her application, she argued she was employed under the terms of the Live Performance Award 2020 and that her dismissal contravened Part 3-1 of the Act.
The employer objected, creating a jurisdictional hurdle that needed resolution before any alleged unfair dismissal claim could proceed. The issue was whether this was an employment relationship with associated protections, or an independent contracting arrangement.
Contractor or employee: relationship structure
The worker performed at an entertainment venue in Queensland. The contract she signed required her to pay reservation fees to the venue based on when she performed, with fees varying depending on the time slot.
Unlike traditional employment, she wasn't paid wages by the venue. Instead, she earned money directly from clients for private performances, with the venue taking a fee from these earnings. She kept the remainder plus any tips received.
The financial structure created a situation where the worker could potentially lose money on shifts if she didn't secure enough private performances to offset the fees paid to the venue.
The worker performed under a self-chosen stage name,...
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