Contract For Services

If none of the above criteria apply, the potential claimant may be engaged under a 'contract for services'.  This may best be decided by finding out from the employer on what basis the employee works.

None of the following points in themselves exclusively preclude a person from claiming compensation.  A judgement must be made on the basis of all the criteria relevant to that particular person, before deciding whether or not he or she is an 'employee' for the purposes of the Act.

  • How much control may be exercised by the employer as to how, when and where the person performs his or her duties?  Can the 'employee' sub-contract?

Yes

Little control by the employer over duties and the ability of the employee to sub-contract could preclude him or her as an 'employee' under the Act.

No

Control by the employer over performance of duties and the inability of the employee to sub-contract could make him or her eligible as an 'employee' under the Act.

  • Is the person in business on his or her own account?  Does he or she have a business set up, so he or she could be labelled a 'contractor'?

Yes

This could preclude him or her as an 'employee' under the Act.

No

He or she could be eligible as an 'employee' under the Act.

  • Is the person considered by outsiders to be 'part and parcel' of the organisation?

Yes

He or she could be eligible as an 'employee' under the Act.

No

This could preclude him or her as an 'employee' under the Act.

  • Does the person provide his or her own tools or equipment?

Yes

This could preclude him or her as an 'employee' under the Act.

No

He or she could be eligible as an 'employee' under the Act.

  • What is the method of payment of wages?  Is the person paid through the normal payment system or is he or she paid in a lump sum?  Does the employer deduct tax?

Yes

Payment in a lump sum without tax could preclude him or her as an 'employee' under the Act.

No

Payment of wages under the normal pay system, with deductions of tax could make him or her eligible as an 'employee' under the Act.

A decision must then be made as to what extent the person is an employee, rather than a 'contractor'.

Source URL: https://clik.dva.gov.au/military-compensation-reference-library/historical-information/comcare-operations-manual/volume-four-new-claims-injury/part-one-introduction/defining-employee/contract-services