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Being a contractor is fundamentally different to being an employee. The fact that you are a contractor has intellectual property ownership, tax and superannuation consequences and increases the possibility of claims against you for negligence and contractual breach. From an employer viewpoint the contract relationship offers risk sharing, tax relief and the need for greater intellectual property understanding and supervision.
Typical causes of action arise under:
Contracting provides greater flexibility in the scope of agreements between customer and contractor, however, there are many clauses which need to be included in a contracting agreement to ensure adequate protection for both parties. While it is possible to draft a one-sided contract, commercial reality will usually dictate that some form of compromise will have to be made by all parties involved to ensure that the contract is enforceable should a dispute arise between the parties.
STEVE WHITE
WHITE SW COMPUTER LAW
JULY 1998
© White SW Computer Law 1998
This article is a guide only and should not be used as a substitute for proper legal advice, readers should make their own enquiries and seek appropriate legal advice.