Work relationships in Australia may take a variety of different forms. The most common is the employment relationship, under which an employer engages an employee to perform paid work.

Employment is mainly distinguished from contracting, ie the relationship established between a principal contractor and an independent contractor, also for the carrying out of paid work.

The distinction between employment and contracting is highly significant, because only employees have rights (and some obligations) under most employment and workplace relations legislation (ie minimum employment standards, award/agreement coverage, unfair dismissal protection). However, some protective laws, such as anti-discrimination and occupational health and safety statutes, apply to both employees and independent contractors.

The common law “multi-factor” test is applied by courts and tribunals to determine whether a worker is an employee or an independent contractor for purposes of the applicable legislation (ie to decide whether a worker is eligible to bring an unfair dismissal claim).

See Employee/independent contractor distinction.

Contracting relationships may be subject to the operation of the Independent Contractors Act 2006 (Cth) (IC Act). This legislation applies to specified forms of “services contracts”, and could have the effect that certain State or Territory legislation does not apply to the parties to such a contract. Part 3 of the IC Act establishes a process for the review of harsh or unfair contracts, on application to a competent court by a party to a services contract covered by the legislation.

See Independent contractors.

Workers are protected against various forms of “sham contracting” by the provisions in Pt 3-1, Div 6 of the Fair Work Act 2009 (Cth) (FW Act). These include prohibitions upon employers misrepresenting an employment relationship as a contracting relationship, or dismissing an employee so as to re-engage them as an independent contractor. Civil remedies, including penalties, may be imposed in respect of breaches of these provisions.

See Sham contracting.

Employment on a permanent full-time or part-time basis is the norm in the Australian workforce. However, other types of employment have become increasingly common including casual work and labour hire arrangements. These are subject to some different legal rules to those applicable to more regular forms of employment.

See Labour hire arrangements and Casual employment.

Specific legal rules also apply to employees engaged as trainees and apprentices, including the provisions of applicable state or territory training legislation.

See Traineeships/apprenticeships.

Employment in the public sector at federal, state and territory levels is regulated by both the applicable workplace relations legislation (ie FW Act, Industrial Relations Act 1996 (NSW)); and applicable federal, state or territory legislation dealing with public sector management (ie Public Service Act 1999 (Cth), Public Sector Employment and Management Act 2002 (NSW)).

See Public sector employment.