- Is usually supervised by an employer
- Is usually required to carry out their work in a particular way, and comply with directions to perform work differently from time to time
- May be required to work only for one employer
- Is entitled to paid holidays and sick leave
- Is often required to represent to the public that they work for the employer (for example, by business cards, uniforms etc)
- Generally cannot subcontract tasks given to them.
- Typically earns a fixed wage or salary and works in the business operated by the employer on a permanent, fixed term or casual basis.
- Employer usually controls how their work is performed.
An Independent Contractor:
- Has established their own business
- Is usually paid to achieve an agreed result
- Usually provides skilled services
- Generally controls how those services are provided
- May be free to subcontract the work to others
- Is free to refuse additional work
- Often supplies the material or special tools to complete the job
- Usually bears the risk and cost of fixing their faulty work
- Can advertise to the general public
- Usually has no right to employee entitlements such as paid leave.
For example, an independent contractor might be hired to perform a specific job or series of jobs and often provides specialist skills and materials.