Are you an independent contractor or an employee?

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This is not an easy question to answer. In fact, even if you have an agreement calling you an independent contractor, the Court might find, after hearing the facts and legal arguments, that, in all the circumstances, you are an employee.

Employee:

- works in someone elses company for wages or salary

- the company pays the employee's PAYE

- the employee receives holiday pay, sick leave, bereavement leave etc.

- the employee is not allowed to work for someone else without express permission of the company

- is fully integrated into the company's business

- is under the control of the company

Independent Contractor:

- invoices the company for his/her services

- pays his/her own income tax

- may be registered for GST

- takes the risks and profits as a business owner

- has a degree of autonomy from the company

If you need help understanding the implications of your employment agreement, or drafting an employment agreement, call Workplace Law on 09 631 5553.