What's the Difference Between a Contractor and an Employee? We Explain the Legalities

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Business owners, managers and employers should exercise caution when classifying a new recruit as an employee or contractor. Misclassification can often result in fines and penalties because the two categories of workers have very different legal rights and entitlements. The Australian Tax Office has identified six factors, which are helpful in making the distinction but even then the difference is not always clear cut and at times can prove dangerously misleading.
To ensure you don’t make this mistake, we have broken down the differences in the two categories explaining the pros and cons of each title. To understand further, read the below infographic.
If you require assistant with any employment law matters, please do not hesitate to contact Owen Hodge Lawyers on 1800 770 780.

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