You must have an ABN to work
Just because a job advertisement says you must have an ABN doesn’t mean that you will automatically be an independent contractor. Even if you have an ABN, you may not be an independent contractor for every job you do. You may not be an independent contractor at all.
Some businesses advertise jobs as 'must have ABN' as a way of lowering their costs.
The work is only for a day or 2
The length of a job or how often you work does not determine if you're an independent contractor or an employee. Depending on the tasks and the working arrangements, short-term work can be employment.
Both independent contractors and employees can:
- be casual or temporary
- be on call
- do infrequent work
- work busy periods
- do short jobs, specific tasks and projects.
These arrangements alone don't determine whether you're an independent contractor or an employee.
You want to be an independent contractor
Just because you want to be an independent contractor doesn’t mean the business you are working for can engage you as an independent contractor. It's not just about what you want – it's the working arrangement you agree to that is important.
If your working conditions meet all the criteria of being an employee, but the business treats you as an independent contractor, they can face penalties and charges. These charges apply for not meeting their employer tax and super obligations.
The business decides you're an independent contractor
Some businesses don't understand the differences between being an independent contractor or an employee. As such the business can get the working arrangement wrong.
It is the terms and conditions in your working arrangement that determine if you're an employee or independent contractor. That is, what you agree to. A business can't just decide to treat you as an independent contractor.
Everyone else in the industry has to have an ABN
Just because everyone in an industry treats their workers as independent contractors doesn't mean that you'll be an independent contractor. If you're an employee for tax and super purposes, your boss can't choose to treat you as an independent contractor.
You have a contract
If your working conditions meet all the criteria of being an employee, you are legally an employee.
If you enter into a contract with the business you work for specifying that you're an independent contractor, this makes no difference to the true nature of the working relationship. The use of the terms ‘independent contractor’ or ‘contractor’ within the contract will not:
- override the real employment relationship or change you into an independent contractor
- change the tax and super obligations the business must meet on your behalf.
If the business you work for should be treating you as an employee, you don't have to wait until the arrangement ends to make the change. You can:
- talk to the business
- seek legal adviceExternal Link
- get help from the Fair Work OmbudsmanExternal Link.