||Most risk is borne by the employer in relation to workplace injuries and poor work.
||Contractor bears all risk responsibility and liability for poor work or injury sustained.
|Hours of Work
||At the direction of the employer – usually set or standard hours of work.
||Generally set by the Contractor although it is acceptable for the principal to set parameters within which work is to be performed.
||Generally hourly rates or salaries paid at regular intervals.
||Payment is on invoice following performance of work under the contract.
||Generally entitled to sick leave, annual leave, long service leave and other benefits and allowances.
||No entitlements or other benefits are payable in respect of leave although it is acceptable for the contract to provide for unpaid periods during which the services may not be performed.
||Employees are usually entitled to be reimbursed for work- related expenses.
||Contractor pays own expenses.
|Period of engagement/expectation of work
||Usually employed on an ongoing basis.
||Usually engaged for a specific task.
||PAYE tax is paid by the employer on behalf of the employee.
||Usually deals with their own income tax. GST is generally payable in respect of the services performed under the contract.
|Ownership of intellectual property
||Employer usually owns intellectual property created and used by employee in the course of their employment. Employee has moral rights.
||Contractor usually owns all intellectual property created by them in the performance of the services but may assign it to the principal for value.
|Ability to accept other work
||Full-time employees are usually restricted from working for other employers during normal business hours.
||Contractors are free to accept work from any other parties.
||Employees don’t generally have the ability to delegate responsibility unless their position entails such ability.
||Can generally delegate all or some of the tasks to other people such as sub- contractors.
|Performance of Work
||Employees work at the direction of the employer.
||Contractor has flexibility to as to how the work is to be performed although the contract may specify the method and materials to be used.
|Authority to command
||Employer directs the way in which work is carried out.
||Contractor works under his or her own direction to achieve the results under the contract.
|Scheduling of work
||Determined by the employer.
||Determined by the contractor in accordance with the terms of the contract.
|Right to refuse work
||No right to refuse.
||Contractor agrees the task to be performed beforehand and is free to refuse work not within the scope of the contract.
|Supply of tools/equipment
||Usually provided by the employer.
||Usually provided by the contractor.