The difference between an employee and independent contractor is based on many different factors. No single factor determines whether a person is an employee or contractor. Instead, courts will look at each case and decide based on the totality of the relationship between the parties when determining the status of a person’s employment. There are some common factors that may contribute to determining whether a person is an employee or independent contractor.
In most cases, independent contractors:
- work for themselves and are their own boss
- are free to accept or refuse work
- control their own working times
- provide their own tools and equipment.
In contrast, employees:
- work in someone else’s business
- are subject to controls on how, where and when their work is performed
- are paid a wage
- receive employee entitlements, such as sick and annual leave.
Employee/contractor decision tool