The nature of the employment and contract arrangements for locum pharmacists varies – they can be engaged as contractors by a pharmacy, as short-term employees of the pharmacy, or as employees of a labour hire agency.
Determining contractor or employee status however requires consideration of a number of characteristics of the relationship, one of these is the superannuation arrangement in place for the individual.
Superannuation arrangements different for employees and contractors.
Under the Superannuation Guarantee (SG) regulations an employer must make super contributions for all employees (for casuals, where earnings reach a certain threshold). The ATO uses the following definition for SG purpose:
Whether a person is an employee of another is a question of fact to be determined by examining the terms and circumstances of the contract. While the definition includes persons who at common law would be regarded as employees, it also extends to a person who works under a contract that is wholly or principally for the labour of the person.
Generally speaking, individuals are regarded as employees if they contract to provide their labour to enable the employer to achieve a result, and as contractors where they contract to achieve a result. The ATO ruling classes people as employees where they contracted their services through either a company, trust or a partnership.
The Independent contractor/employee test
The following checklist sets out the substance of the multi-factor test which the courts apply in determining contractor/employee status: