Case Analysis Stevens V Brodribb Sawmilling Co Pty Ltd
Introduction
The Classification between an independent contractor and employee has raised a number of issues throughout the past 50 years. Failing to create an effective formality to be applied by the courts to any particular case, it has lead to commercial uncertainty through Australia. This essay will analysis Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 decision regarding the high court process in distinguishing between whether there was an relationship between the employer of employer/employee or employer/independent contractor.
Facts
While working for Brodribb Sawmilling Co, Stevens and Gray were employed by Sawmilling Co Pty Ltd as a trucker and snigger. During 1985, while Gray was moving a Log onto Stevens truck, the log fell off and rolled off the truck, as a result, Stevens was injured1. These truckers and sniggers used their own vehicles, worked during the time they set out, were paid by the amount of timber delivered and did not deduct income tax installments2. Both employees owned and used their own equipment and vehicles, were never guaranteed work from the Sawmill3 and were free to seek other work if factors such as the weather prevented them from working4.
Issue 1. To establish whether Gray and Stevens were employees or independent contractors while employed by Sawmilling Co.
Rationale Decidendi
The legal principle that the High Court applied in Stevens5, in regards to employee/independent contractor, was the ‘multiple indicia test’. This test is used to identify a number of criteria that the court can use, when distinguishing between employees or contractors. In regards to Stevens, Control was weighed as the significant factor when deciding between employee/contractor during the case.
Judgement and Analysis
Stevens6 was held in favour of Sawmilling Co Pty Ltd, classifying the two as independent contractors through the application of the ‘indicia’. The test was originally established in 1968 in the UK 7,
The Classification between an independent contractor and employee has raised a number of issues throughout the past 50 years. Failing to create an effective formality to be applied by the courts to any particular case, it has lead to commercial uncertainty through Australia. This essay will analysis Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 decision regarding the high court process in distinguishing between whether there was an relationship between the employer of employer/employee or employer/independent contractor.
Facts
While working for Brodribb Sawmilling Co, Stevens and Gray were employed by Sawmilling Co Pty Ltd as a trucker and snigger. During 1985, while Gray was moving a Log onto Stevens truck, the log fell off and rolled off the truck, as a result, Stevens was injured1. These truckers and sniggers used their own vehicles, worked during the time they set out, were paid by the amount of timber delivered and did not deduct income tax installments2. Both employees owned and used their own equipment and vehicles, were never guaranteed work from the Sawmill3 and were free to seek other work if factors such as the weather prevented them from working4.
Issue 1. To establish whether Gray and Stevens were employees or independent contractors while employed by Sawmilling Co.
Rationale Decidendi
The legal principle that the High Court applied in Stevens5, in regards to employee/independent contractor, was the ‘multiple indicia test’. This test is used to identify a number of criteria that the court can use, when distinguishing between employees or contractors. In regards to Stevens, Control was weighed as the significant factor when deciding between employee/contractor during the case.
Judgement and Analysis
Stevens6 was held in favour of Sawmilling Co Pty Ltd, classifying the two as independent contractors through the application of the ‘indicia’. The test was originally established in 1968 in the UK 7,
Bibliography: Case Law Federal Commissioner for Taxation v J Walter Thompson Pty Ltd (1944) 69 CLR 227 (at 231) Hollis V Vabu Pty Ltd (2001) 207 CLR 21 Jackson & Wilson v Monadelphous Engineering Associates Pty Ltd (1997) 42 AILR 3-658 Leichhardt Municipal Council v. Montgomery (2005) NSWCA 432 Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance (1968) 2 QB 497 Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 Translators Agency Pty Ltd v Commissioner of Taxation (2011) FCA 366 Vabu Pty Ltd v Commissioner of Taxation (1996) 81 IR 150 Vabu Pty Ltd V FC 96 ATC 4898 Zuijs v Wirth Bros Pty Ltd (1955) 93 CLR 561 Legislation Catanzanti, J. ‘Two limbed test distinguishes employees from contractors’ (2011) 49 (6) Law Society Journal 52-56 Chan, T Chin, D. ‘Losing Control: the Difference Between Employees and Independent Contractors after Vabu v Commissioner of Taxation’ (1996) 52 Law Society Jay, D. J. ‘Employees and Independent contractors, (1999) 73 Australian Law Journal Volume 30-34 Lockton, D Marshall, B. ‘Working it out – Employee or independent contractor’ (2006) 12 (5) The National Legal Eagle 14-19 Nieuwenhuysen, J Steckfuss, K. ‘The Regulation of Unpaid Superannuation Contributions: The Inspector-General of Taxation’s Review into the ATO’s Administration of the Superannuation Guarantee Charge’ (2011) 24 (3) Australian Journal of Labour Law 281-294 Stuhmcke, A Terry, A. and Ginugni D. Business and the law (5th ed 2009) 819- 8-20 Vincent, R Other Sources Australian Government, Fair Work: Independent contractors and Employees Fact Sheet (2012) at 15 May 2012 2 Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 3 Gava, J., ‘Another blast from the past or why the left should embrace strict legalism: a reply to Frank Carrigan’ 27 (1) (2003) Melbourne University Law Review 186-199 4 De Plevitz, L. ‘Dependent contractors: can the test from Stevens v Brodribb protect workers who are quasi-employees?’ (1997) 13 Queensland University of Technology Law Journal 263-275 5 Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 6 Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 7 Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance (1968) 2 QB 497 12 Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 13 Terry, A 14 Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 15 Stuhmcke, A 16 Franklin, G., Lilburne, R. ‘Joint Employment: Possible pitfalls with the use of labour hire in the resources industry’ (2005) Australian Mining and Petroleum Law Association Yearbook 275-299 17 Hollis V Vabu Pty Ltd (2001) 207 CLR 21 18 Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 19 Franklin, G., Lilburne, R 20 Stevens V Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16