Josie [1] TressCox Lawyers 2018, Contractor or

Josie is
most definitely an employee. Although she has some flexibility when it comes to
choosing the location of where she has to fix the computers, there are various
facts that show she is an employee. First of all, she was given software
equipment by the business, which she did not own. Next, she is given payment at
a set rate on an hourly basis determined by the business and not herself. Although
she was given some flexibility in regard to the area where she works, she is
still doing what the employers ask of her nonetheless. Also, independent contractors
aren’t allowed to have leaves such as holidays or personal, however employees
can. The fact that she could ask for off days during school holidays is proof
that she is an employee. If the court were to determine she is an employee,
which she is, then the consequences would be dire. First there would be a
notice sent to the employer’s Ali and Bob, following which the commissioner
would commence the recovery proceedings based on estimate of the employer’s
liability. Assuming that Ali and Bob were to not pay the Superannuation by the
date set by commissioner, there would be an increase in nominal interest as
well as an interest charge.1
The case Hollis v Vabu {2001} 207 CLR 21, though not similar had quoted, ‘the
distinction between employee and an independent
contractor is rooted fundamentally in the difference between a
person who serves his employer in his, the employer’s, business, and a person
who carries on a trade or business of his own’.2  In conclusion, if the court determines Josie
is an employee, then Ali and Bob are in trouble and I believe that Josie is an employee.

1 TressCox Lawyers 2018, Contractor or employee: The consequences of
getting it wrong, viewed 24 January 2018,

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2 Hollis v Vabu (2001) 207 CLR 21.