Had this discussion with the financial controller of my organisation last month - we had just started a junior instructor and the FC's opinion was that hey the employment laws have changed, we'll make him a contractor.
I pointed out that:
a) we control his hours of work
b) we provide tools, materials;
c) we provide the system of work; and
d) we provide the students for him to train.
The simple upshot is that he is an employee, no matter which way you cut it, and yeah we are liable to pay workers comp etc etc etc.
