Employees vs. Contractors – which is best for your business?

31 May, 2017

As an employer or business owner, it’s important that you know the difference between an employee and a contractor and which will be best for your company.

Employees work in your business and are part of your organisation.

Employees are usually:

  • given ongoing work and hours and only work hours that are set by their employer
  • paid superannuation by their employer
  • entitled to minimum wages and to be paid regularly
  • entitled to paid leave if they are permanent employees
  • not responsible for financial risk (e.g. supplier invoices)

Your worker may be considered a contractor for taxation purposes, but an employee for other purposes which is why it’s important to consider each situation and be clear on your workers’ roles to avoid any confusion.

At MEGT, our recruitment experts can help you determine which will be best for your business. We can also create a tailored recruitment strategy to source and select quality candidates.

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