Master Builders Victoria April-June 2022

Page 52

INDUSTRIAL RELATIONS

Contracts are the key to engaging contractors Personnel Contracting Pty Ltd (Personnel Contracting) and ZG Operations Australia Pty Ltd v Jamsek (Jamsek). James Kenyon-Smith

The decisions of the High Court are significant as they:

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1. Are a departure from how the courts have previously assessed whether a relationship between a worker and a company is an employment or contractor relationship; and

The cases in question were CFMEU v

2. Have significant practical implications that can help businesses better manage their risk when engaging independent contractors.

arlier this year, two landmark cases by the High Court of Australia emphasised the importance of having a written contract when engaging a worker as an independent contractor (often referred to as a contractor, subcontractor or subbie).

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Master Builders Victoria

What was the issue? Both matters concerned the same issue – was a worker engaged by a company as an employee or an independent contractor? Background facts Despite the workers in both matters signing written independent contractor/ service agreements, the workers contended that they were employees and should be entitled to certain employment payments that were not made to them (such as wages and leave entitlements owing under the Fair Work Act 2009 and the Building and Construction General On-Site Award

Volume 77 Issue 02


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