Under the WorkCover scheme, the term contract of service has a broad application, so that people who may otherwise be considered contractors are legally deemed to be workers under the Workers Rehabilitation and Compensation Act 1986 (the Act). If you hire workers in these prescribed classes of work you are legally considered to be an employer, and must therefore, register with WorkCover.
Prescribed classes of work
The guides below will help you to determine if you employ workers under the terms of the WorkCover scheme.
Registration exemption (domestic workers)
If you employ a worker (or workers), but not for the purposes of a trade or business, and the remuneration paid to the worker(s) does not exceed $10,200 in the 2008 calendar year, you are not required to register as an employer and not required to pay a levy.
Working directors
A director of a company undertaking services to that company, other than the standard duties of a director, is usually considered a worker. This is because a contract of service exists between the company and the director. You are required to register and account for the working director in your levy payment.
Legal definitions of the terms 'worker' and 'contractor' can be complex, so if you have any queries about your business contact us or phone our Service Centre on 13 18 55.