A contractor will be an employee where:
- The individual is remunerated (either wholly or principally) for their personal labour and skills;
- the individual must perform the contractual work personally (there is no right of delegation)
- the individual is not paid to achieve a result
There are six main tests to consider:
- The control test
- The integration test
- The results test
- The delegation test
- The terms of engagement test
- The risk test
A contract for services would state the services to be performed in return for an agreed payment and or results.
The main features of the control test are the right to control how, when, where and who is to perform the labour.Activities or requirements of a worker which may indicate their integration into the business include:
- the hours spent working for the principal
- the work is normally performed at the premises of the principal
- the work is performed using a substantial amount of the principal’s assets and equipment
- inability to perform other work
- performance is monitored
- requirement to comply with the principal’s policies
- guidelines or directions, training, dress standards
- attending meetings
- provision of protective equipment.
The main features of the control test are the right to control how, when, where and who is to perform the labour.
Activities or requirements of a worker which may indicate their integration into the business include:
- the hours spent working for the principal
- the work is normally performed at the premises of the principal
- the work is performed using a substantial amount of the principal’s assets and equipment
- inability to perform other work
- performance is monitored
- requirement to comply with the principal’s policies
- guidelines or directions, training, dress standards
- attending meetings
- provision of protective equipment.