The fake "contract" situation is rampant in many industries. It's a great way for the employer to dodge Work Cover and other similar things.
People don't seem to realise that you just can't call anyone a contractor.
The following is from
http://www.wagenet.gov.au
This test provides a guide to determining if a person is an employee or independent contractor. However, the test is only a guide, because to determine whether or not someone is an employee or an independent contractor is a question of fact in each case and depends on the individual circumstances.[list=1][*]Is the worker paid a wage or salary?[*]Is the work performed at the employer’s place of business? [*]Does the worker work regular or defined hours? [*]Is the worker engaged to produce a certain result, the completion of which will terminate their relationship with the employer, at least for the time being? [*]Does the worker provide their own plant or equipment as a means of accomplishing their work? [*]Does the worker have the right to sub-contract their work? [*]Is the worker subject to detailed or direct control or could the employer subject them to such control if they chose to? [/list=1]
- The person is likely to be an employee if you answered 'yes' to questions 1, 2, 3 and 7, and answered 'no' to 4, 5 and 6.
- Sometimes, the answers to 4, 5 and 6 may be "yes" and the person could still an employee.
- If the answer to question 7 is "yes", the worker is most likely to be an employee.