Rules Mate

Free tool

Employee vs contractor classification checker

From 26 August 2024, the Fair Work Act s15AA 'true nature of the relationship' test looks at the real substance, practical reality and totality of the relationship — both the contract terms and how the work is actually performed. Weigh each multifactor indicator below to see which way the relationship leans.

Last verified: 1 July 2026

Indicative only — not legal advice.

Classification under the Fair Work Act is a whole-of-relationship legal judgement. This tool weighs the indicators you select; it cannot decide status. Always confirm with a workplace-relations lawyer or the Fair Work Ombudsman before acting.

Multifactor indicators

For each indicator, choose which way the practical reality of the relationship points. Under s15AA no single factor is decisive — look at the totality.

Control over how, when and where the work is done

Ability to delegate or subcontract the work

Who provides the tools and equipment

Who bears financial risk / can make a profit or loss

Operates their own business vs is integrated into the principal's business

Basis of payment

Exclusivity — whether they work for others

Who sets the hours of work

Whether the worker is presented as part of the business

Expectation of ongoing / indefinite work

Indicative classifier only — NOT legal advice. Classification is a whole-of-relationship legal judgement and no online tool can determine it. The output reflects only the indicators you select. Sham contracting carries penalties, and the ATO applies separate tests for PAYG and super. Always obtain advice from a workplace-relations lawyer or the Fair Work Ombudsman before acting.

Related tools

Payday Super readiness

Open tool →

Right to Disconnect policy

Open tool →

WGEA readiness

Open tool →

WHS incident timer

Open tool →

Frequently asked questions

What changed on 26 August 2024?
A new s15AA of the Fair Work Act introduced the 'true nature of the relationship' test. Whether a worker is an employee or a contractor is now determined by the real substance, practical reality and true nature of the relationship — considering the totality of the relationship, including both the terms of the contract AND how it is performed in practice. This deliberately moves away from the 2022 High Court approach (ZG Operations v Jamsek; CFMMEU v Personnel Contracting) that emphasised the written contract terms alone.
Is any single factor decisive?
No. It is a multifactorial, whole-of-relationship assessment. Control, delegation, tools, financial risk, integration into the business, basis of payment, exclusivity, hours, presentation and expectation of ongoing work are all weighed together. A written 'contractor' label does not settle the question if the practical reality points the other way.
What is sham contracting?
Sham contracting (Fair Work Act s357) is misrepresenting an employment relationship as an independent contract. Under the Closing Loopholes changes the employer defence shifted from a 'recklessness' to a 'reasonableness' standard, and penalties increased. Contractors above the contractor high income threshold can also give written notice to 'opt out' of the new s15AA definition.
Does this also settle tax and super?
No. The ATO applies its own separate tests for PAYG withholding and the super guarantee. A worker can be an independent contractor at general law but still be deemed an employee for SUPER purposes under s12(3) of the Superannuation Guarantee (Administration) Act. Always check tax and super obligations separately.

Not sure which obligations apply to you?

Run the Compliance Fingerprint — a 2-minute structured assessment that maps your business to every obligation, deadline and regulator that triggers.

Build my Compliance Fingerprint →