Hiring Construction Workers? Are they Employees or Contractors?

Considering how to staff your business is tough and the question of employees over contractors is getting more and more attention as Trade Unions and the government crack down on employers in the Building and Construction Industry whom they think are abusing the system when hiring construction workers.

To correctly determine whether a worker is an employee or contractor, you need to look at the whole working arrangement as your businesses tax, super and other government obligations will vary depending on the arrangement you have. If you make a mistake deciding on how the arrangement should be dealt with, you risk some pretty serious penalties.

A worker isn't automatically a contractor just because they have an ABN or you only need them during busy periods. Questions you need to consider when hiring and NOT using a labour hire intermediary are:

  1. Is the worker an apprentice, a trade assistant or a labourer?
  2. How do you pay the worker? On a quoted price, piece rates or a set rate whether it’s hourly, daily, weekly or award wages?
  3. Whether the worker invoices you? Or you pay them?
  4. Does the worker need his or her own tools & transport or does you provide this?
  5. Is the worker liable to fix any defects on the job
  6. The recruitment process you went through to hire the worker
  7. Whether the worker needs to be identified as part of your business by wearing a branded t-shirt, driving a branded van, using your businesses cards etc

The ATO have an Employee/contractor decision tool that makes it easy to get the right answer and stay on the right side of the law. Check it out here.

Posting a job on ConX allows you to specify what type of construction worker you want to hire, so whatever you decide, you’ve got flexibility when hiring with us.

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