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The High Court of Australia has clarified the proper approach to be taken when determining if a worker has been engaged as an ‘employee’ or an ‘independent contractor’, in cases where the parties’ contractual arrangements are wholly in writing.
As reported by Lexology, in a number of secgtors including construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1 (“CFMMEU v Personnel”) and ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 (“ZG Operations v Jamsek”), the a majority of the High Court held that, in a case in which the parties’ contract is wholly written, a court or workplace tribunal is prohibited from considering the subsequent conduct of the parties, including the substance or reality of the how the contract was performed, and must assess exclusively the parties’ written contractual rights and obligations.
In both of these matters, it was accepted that the engagements between a labour-hire firm and a casual construction labourer (CFMMEU v Personnel) and an electrical lighting firm and a pair of truck drivers (ZG Operations v Jamsek) were arrangements that had been comprehensively committed to written contracts.
To read the full article as appearing on Lexology, click HERE.