Termination Notice and Fair Work Act

Running Head: Law 1
Law

Law 2
Answer 2
Part A
Issue:
Whether Stella is considered as an employee of PRX?
Rule:
The main difference between employee and independent contractor is stated below:
 Employee entered into contract of service, but contractor entered into contract for
services. Employer exercise control over the employee but no control was exercised by employer
on contractor. It is considered as traditional test which was developed in Zuijs v Wirth
Bros (Zuijs v Wirth Brothers Pty Ltd 1995).
 Employer exercise control over the employee but no control was exercised by employer
on contractor.
Multiple indicia test was introduced by common Law in case Stevens v Broadribb Sawmilling
Co Pty Ltd (Stevens v Brodribb Sawmilling Co Pty Ltd 1986). This test was confirmed in
case Hollis v Vabu Pty Limited (Hollis v Vabu Pty Ltd 2001)in the Australia. This test
include following factors:
FACTORS INDEPENDENT
CONTRACTOR
EMPLOYEE
Training If no training is conducted by
employer.
If training is conducted by
employer.

Law 3
integration If worker is not integrated into
business.
If worker is integrated into
business such as wearing
uniforms use vehicle of
employer, etc.
Tax arrangements If managed by worker itself If managed by employer.
Duration of service If worker is performing any
specific task
When worker is employed for
indefinite period.
Remuneration Lump-sum amount wages
Control related to place and
hours of work
worker stated the place and
hours of work
Employer stated the place and
hours of work
Delegation of work If worker has ability to
allocate the work to others.
If worker does not have ability
to allocate the work to others
(teacher n.d.).
Supplied and maintenance of
equipment and tools.
If supplied by worker then
independent contractor.
If supplied by employer.
Application:
In the present case, Stella worked for PRX and entered into contract with PRX which states that
she is not the employee of PRX but all the rules of PRX are applicable on her:
 Stella work as per her discretion, and working hours are not decided by the PRX, and as
per multiple indicia test if working hours of the person are not decided by its employer
then such person is considered as independent contractor.