New South Wales Government

The following examples describe various employment situations in different work environments. These examples can help determine a worker’s status. These examples are based on real private rulings issued by WorkCover.

 

These are examples of some of the indicators useed in  the assessment process and can not be relied upon to give a definite decision. You can lodge an application for a private ruling if you require a definite decision.
  

1. Transport industry

2. Construction industry  

 

Transport industry case study

A delivery company won a contract to deliver parcels. The delivery company used the services of a person to perform this task and the working arrangement was as follows:

• the person is an individual sole trader and does not have a registered business name
• they do not advertise for their business
• the person is registered for and charges GST to the delivery company
• the person does not employ others to assist with the work provided
• the person does not sub-contract any of the work to another party
• the person does not work for anyone else and invoices provided in the application were sequential for a significant period of time
• the rate of payment used is per parcel delivered set by the delivery company
• the person uses their own vehicle and lifting devices for work
• the vehicle is insured in the person and the persons’ spouses name, indicating that the vehicle is not only used as a business vehicle but also used for private purposes
• the person does not wear a company uniform and there is no logo on the car
• a verbal agreement exists to correct mistakes made by the person, but the person is covered under the public liability policy of the delivery company
• the person does not hold insurance covering damage to goods under their control during the delivery process
• the person sets their own work practices and hours but all deliveries must be completed on the allocated day.

On the basis of this information, a private ruling determined this person was a worker. While there was a range of indicators that would suggest the person was a contractor, the balance of considerations, including

• the continuing exclusive nature of the agreement
• the rate of pay being set by the company
• the person being insured under the company’s public liability insurance

led to the decision of worker.

 

Construction industry case study

A specialist building company used the services of a person to complete specific jobs for projects. The working arrangement are as follows.

• The person is an individual sole trader that does not have a registered business name
• They don’t advertise for their business
• The person charges GST and is registered to the building company
• The person doesn’t employ others to assist with the work provided
• The person is required to carry a specific trade license when undertaking work
• This license is not restricted allowing the person to do the work and supervise others
• The person provided detailed quotes outlining the goods and services to be provided, including the specific materials needed to produce the result.
• Payment terms were outlined on the quote and were based on the of completion of work
• The person determines their own work practices, hours and how the work is completed
• The person provides their own tools and equipment used in carrying out the work.

On the basis of this information, a private ruling determined this person was contractor.