03 July 2020

Caught in two minds

Employment Law
Federal

Asked

Employment law - Company as employee or contractor of another company

Can a company be an employee of another company? If not, must it be a contractor?

Answered

Thank you for the question.

For the purposes of the Fair Work Act 2009 (Cth), a company cannot be an employee of another company.

Not being an employee does not necessarily imply the working arrangement is that of a contractor. According to the Australian Taxation Office’s Employee/contractor decision tool, a company that works for another company may simply be entering into an agreement with another company other than as a contractor.

Regards

Mentor