There may be instances where you will be engaging the services of a contractor (individual / company) instead of hiring an employee. The law treats employee and contractors differently. This means your obligations and their rights vary depending on the established relationship.

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In general, a contractor is deemed as a business dealing with another business (ie you) where it is not entitled to the usual employment benefits (eg paid annual leave, sick leave, superannuation etc...).

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It is important to note that serious penalties are imposed on employers that engage in sham contracting arrangements to disguise actual employer-employee relationship. Click here to learn more. 

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