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Self Employed Australia

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International definition of independent contractor

In 2005 the International Labour Organisation produced a report on research it had undertaken into how nations’ legal systems across the globe identify the differences between an employee and an independent contractor. This was and is the only authoritive global research on the issue undertaken of which ICA is aware.

Essentially the report confirmed that the type of approach used by courts across the globe is that as explained by ICA under our “swinging pendulum test“.

ICA has identified about 20 subtests in the ‘swinging pendulum assessment. The ILO found that jurisdictions across the world use these tests.

The ILO 2005 Report identified the international definitions of ’employment’, ‘worker’ and ‘non-employment’.

The document says:

What is surprising is the amount of convergence between the legal systems of different countries in the way they deal with this [distinguishing employment] and other aspects of the employment relationship, even between countries with different legal traditions or those in different parts of the world…. Irrespective of the definition used, the concept of a worker in an employment relationship has to be seen in contrast to that of a self-employed or non-dependent worker…. (Paragraphs 86-87)

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