CAUTION – EXTENDED DEFINITION OF EMPLOYEE
Even where a worker falls into the category of contractor under the common law, contrary to popular belief, superannuation may still be payable by the employer where the contract (written or verbal) under which they are engaged is wholly or principally for the worker’s labour. Generally, a contract is principally for labour where more than 50% of the dollar value is for labour. A worker’s labour includes physical labour, mental effort and artistic effort. If this condition is met, then superannuation will be payable where the worker:
- Must perform the contract work personally, and
- Is paid for the hours worked, rather than to achieve a result.
