Appl Ex 7f

Application Exercise 7f: Employees or independent contractors?

  1. Henry is largely independent has considerable control and choice about when he works and who he performs work for. He accepts all of the risks associated with this type of risky and itinerant employment and is happy to forgo the benefits associated with a typical employee type relationship.

 

  1. Sam is much less independent given that she does not have much control and choice, particularly when compared to Henry. She performs work only for Deliveroo, is restricted in terms of the shifts she can work and wears a uniform.  Despite this, she does not receive any of the other benefits normally attached to a relationship of this nature – i.e. as an employee.

 

  1. Henry is an independent contractor to the ride sharing platforms and there is no employee/employer relationship. In this respect and he is effectively self-employed.  Despite the fact that Sam has provided the platform with an ABN, the relationship between her and Deliveroo is much closer to one that can be characterised as an employer/employee relationship.  this is because she wears a uniform, is required to work a minimum  of three 4 hour shifts per week and has limited flexibility.

 

  1. Based on the information provided, Sam is much less likely to be happy with her arrangement compared to Henry. In many respects, she is forced to endure the in negatives associated with employment (e.g. strict working times, the requirement to wear a uniform and limited flexibility) but without the additional benefits associated with employment (compared to contracting).  These benefits include penalty rates, sick leave, and long service leave.

 

  1. This is a value judgement for each student to consider.