Independent contractor
In Australia, an independent contractor runs their own business and provides services to a client, but an ABN or contractor agreement does not settle the classification question on its own.
An independent contractor is someone running their own business who provides services to a client without joining that client’s payroll as an employee.
In Australia, the reality of the relationship matters more than the label on the agreement. An ABN, invoice, or contractor clause does not by itself make the arrangement genuine contracting. If the person is really being engaged like an employee, sham contracting can become the issue, and Fair Work rules still apply.
That matters in labour hire, events, hospitality, delivery, and other flexible-work settings where businesses want variable labour without a fixed headcount. The practical question is who controls the work, who carries the business risk, and whether the worker is genuinely operating their own enterprise.
Different elsewhere: in the UK, off-payroll tax rules under IR35 sit alongside separate employment-law status tests. In Canada, the same issue is often framed through employee-versus-contractor classification under CRA guidance and provincial employment rules.
Ready to simplify your team coordination?
Try Zelos for free