Operating Since 1983
Operating Since 1983
Some contractors are covered by workers’ compensation in Queensland. Your eligibility depends on whether the law considers you a worker, not simply what your contract calls you.
Having an Australian Business Number (ABN), issuing invoices, paying your own tax or supplying tools does not automatically prevent you from making a claim.
Try our free 30 second claim checker or please contact us for a free assessment.
Under section 11 of the Workers’ Compensation and Rehabilitation Act 2003, a worker is generally an individual who works under a contract and is considered an employee for PAYG withholding purposes in relation to that work.
Schedule 2 of the Act also identifies specific people who are included in or excluded from the worker definition. This means calling someone an independent contractor does not necessarily determine whether they have workers’ compensation cover.
A contractor may be considered a worker where the contracted work is not part of a trade or business they regularly carry on and they:
Do not sublet the contract
Do not employ another worker
Personally perform part of the work if they employ someone else
The Act also includes some labour hire workers and people whose services are hired out to another business. These workers are sometimes described as deemed workers.
The Act excludes some people from the worker definition, including certain people working under contracts with:
A company of which they are a director
A trust of which they are a trustee
A partnership of which they are a member
Other specific exclusions apply, but most are not directly relevant to ordinary contractor arrangements. Coverage depends on the person’s contract, business structure and the work they performed.
WorkCover Queensland or a self-insurer will look beyond the words used in the agreement. Having an ABN or being described as an independent contractor does not decide the issue by itself. The contract, business structure and way the work was performed must be considered together when considering your status as a worker for workers’ compensation purposes.
The written or verbal contract is important, but it should reflect the true nature of the relationship.
WorkCover may consider who decided:
When and where the work was performed
How the job had to be completed
Which tasks the contractor performed
Whether the contractor could refuse additional work
Greater control by the company may support worker status. Greater independence over how the agreed result is achieved may indicate a genuine contracting arrangement.
WorkCover may consider whether the person received hourly pay or wages, invoiced for a completed job or worked for an agreed contract price.
An ABN, responsibility for your own tax or payments made under a business or firm name may be relevant. However, an individual or sole trader can still be considered a worker when the broader arrangement supports that conclusion.
Supplying a substantial amount of one’s own tools, machinery or equipment may indicate that the contractor operates an independent business. Bringing ordinary hand tools to the workplace is less likely to decide the issue.
WorkCover may also consider whether the contractor could engage a sub-contractor or pay someone else to complete the job. A requirement to perform the work personally may support worker status.
A genuine independent contractor will commonly carry some commercial risk.
Relevant factors may include:
Who paid the expenses associated with the job
Who was responsible for correcting defective work
Whether the contractor could make a profit or suffer a loss
Who held insurance for damage or faulty work
Employees are generally paid for their work without carrying the direct financial risk of completing the job.
A sole trader is not automatically excluded from workers’ compensation cover. An individual or sole trader may still qualify as a worker based on the contract, PAYG status and broader working arrangement.
Operating under an ABN, issuing invoices or paying your own tax does not provide a definitive answer.
A sub-contractor may be covered if they meet the worker definition or fall within a specific inclusion under Schedule 2.
A person who personally provides labour under another company’s direction may be treated differently from an independent business engaged to deliver a completed result.
A person employed by a labour hire agency may perform their daily work for a separate host business.
Labour hire workers with a contract of service are generally workers of the labour hire agency, although the contract and payment arrangements should still be checked.
Most employers in Queensland hold workers’ compensation insurance through WorkCover Queensland. Approved self-insurers manage and pay their own workers’ compensation claims.
If an eligible contractor’s claim is accepted, compensation may assist with:
Lost wages through weekly compensation
Reasonable medical costs
Rehabilitation and treatment expenses
Travel related to treatment
Lump sum compensation for permanent impairment, where applicable
The payments available depend on the injury, medical evidence and circumstances of the claim.
Read more about how to make a workers’ compensation claim.
A genuine independent contractor or sole trader may not be covered by the workers’ compensation insurance held by the business that engaged them.
Separate cover may be available through workplace personal injury insurance, personal accident cover or income protection. These policies generally need to be arranged before the injury and will be subject to their own terms and exclusions.
Depending on how the injury occurred, another insurance or compensation pathway may also apply.
Do not assume you are unable to claim simply because you have been called a contractor. You may still lodge a workers’ compensation claim while your worker status is being assessed. WorkCover considers whether the person was a worker as part of its claim decision.
After a workplace injury:
Report the injury to the relevant business or labour hire agency
Seek medical treatment and obtain a Work Capacity Certificate
Keep your written contract and any later changes
Save invoices, payslips and payment records
Retain tax and PAYG withholding information
Keep rosters, emails and workplace instructions
Record who supplied the tools and equipment
Identify who controlled the work and carried the financial risk
WorkCover or a self-insurer may reject a claim because it considers the injured person to be an independent contractor rather than a worker.
That decision may be reviewed. Evidence about the contract, control, payment arrangements, tools, delegation rights and business structure may help show how the relationship operated.
Read more about what happens if WorkCover rejects your claim.
Strict time limits apply for workers’ compensation claims in Queensland. A workers’ compensation application is generally lodged within six months after the entitlement to compensation arises, which is usually when the injury is first assessed by a doctor or another authorised health practitioner.
Separate deadlines can apply to requesting reasons, reviewing a rejected decision and making a common law claim. Uncertainty about contractor status does not stop these time limits from running.
You’re welcome at any time to contact us for a personalised, obligation-free claim assessment which is tailored to your circumstances. Or feel free to use our compensation calculator, which will give you an indication of how much compensation you may be due.
The Personal Injury Lawyers are long-term and proud members of some of the organisations and groups below. We care deeply about the work we do, our staff and who we associate with.
Try our free 30 second claim checker or please contact us for a free assessment.