Understanding the Difference between Employee and Contractor

In the business world, the lines that typically separate employees from contractors and unpaid workers (e.g. interns) can often find themselves getting blurred, particularly if a contractor or intern spends an extended period in the office performing the same duties as the standard employees. However, this blurring can end up being detrimental to a business, potentially resulting in financial or legal trouble. Experienced solicitor Glenn Duker, specialist in employment law, provides an explanation that can help employers fully understand the capacity in which a worker is attached to the business.

Why is it important to differentiate between the two?

While you might have two people with the same qualifications and level of experience performing the very same job, if one is classed as an employee and the other a contractor it’s important to make the distinction between the two as they have different legal requirements regarding leave, super and other matters. If you take an employee who’s mistakenly classified as a contractor, a bit further down the track they could make a legitimate claim against you for back pay, annual and long service leave and compulsory superannuation payments. This could get quite costly; especially if it is not resolved quickly and even more so if it involves more than one employee.

The Australian Taxation Office offers a helpful tool to help you better make the distinction between employee and contractor. I strongly recommend using this tool if you believe there might be a grey area with anyone who works for you. If you need assistance with any employment law matters in Victoria, do not hesitate to make an appointment with lawyer Glenn Duker today.

For more information :- http://glenndukerleaseinfo.com.au/