Contractors and Workers
It is your responsibility to find out whether your contractors are considered workers by the VWA. If they are, this may impact your total remuneration, which is one of the key factors that influences your premium and whether you need to register for WorkCover insurance. If your total remuneration then exceeds $7,500, you must register for WorkCover insurance. Additionally, as the employer you may be liable if the contractor is injured while performing work for you.
The term 'contractor' covers a wide variety of people, including:
Contractors may operate as sole proprietors, partnerships, companies or through family trusts.
Each time you hire a contractor, you need to determine whether they are considered to be a 'worker' by the VWA. If the person is considered a worker, you effectively become their employer for WorkCover insurance purposes, and you must include the money you pay them in your total remuneration.
Assessing a contractor
A range of guidance material has been developed to assist in understanding the contractor provisions and in determining if a contractor you engage may be considered your worker for WorkCover insurance purposes.
- General contractor guidelines
- General contractor provisions – Contracts mainly for equipment or materials
- General contractor provisions – Contractor deductions
The Worker and Contractor Assessment Tool has been developed to assess the relationship between the hirer and the contractor to assist in the determination of the status of both.
Different types of workers
In addition to contractors that may be seen as workers for WorkCover insurance purposes there are a range of occupations where those undertaking them have specific treatment as either workers or as running their own business. Information on these specific occupations can be found on the Types of workers page.
- Apprentices and trainees
- Labour hire
- Determining your remuneration
- What to do if a worker is injured – A guide for employers
Any questions should be directed to your WorkCover agent.
Contractual relationships pre 30 June 2011
The tests for determining if a contractor is the deemed worker of their hirer were different prior to 1 July 2011. If you are assessing a contractual relationship that existed before then the following guideline should be used.