Pressure to incorrectly treat employees as contractors
If your business accepts an invalid contracting arrangement, you may face penalties and other charges for failing to comply with your obligations. Don't agree to break the law. Discuss the information we provide on our employee or contractor pages with the worker. You can also seek professional advice if required.
Paying super to contractors
If you pay contractors under a contract that is wholly or principally for their labour, you have a legal obligation to pay super contributions for them into a complying fund.
Your business cannot contract away its legal obligations to pay super even if the contractor agrees.
Giving contractors employment conditions
Sometimes workers who request to be engaged as contractors also request conditions that only apply to employment, such as the ability to salary sacrifice or to be paid tax-free living away from home allowances.
Access to these conditions is a clear sign that the underlying arrangement is employment, not contracting.
Find out what to do if a worker demands to be treated as a contractor, even though they are an employee.