Workers compensation is designed to protect people when they’re injured at work. But if you’re an independent contractor in Queensland, things aren’t always straightforward. Many contractors assume they’re covered the same way as employees, only to find out after an accident that the rules are very different.
This confusion can have huge consequences. Getting it wrong may mean missing out on medical care, weekly payments, or other financial support you thought you’d receive.
This guide explains how workers’ compensation applies to independent contractors in Queensland, what rights may exist, and the steps to take after an injury.
Employee vs Contractor: Why the Difference Matters
Whether you’re classed as an employee or an independent contractor is the first big question when it comes to workers compensation.
On paper, the two roles look very different:
- Employees usually:
- Work under the direction of their employer
- Get paid wages with tax taken out automatically
- Receive superannuation and leave entitlements
- Use equipment provided by the business
- Carry no personal financial risk
- Independent contractors generally:
- Work for themselves, not for one boss
- Decide how and when the job gets done
- Pay their own tax and super
- Use their own tools and equipment
- Take on the financial risks (profit and loss) of the job
But here’s the catch: just because your contract says “independent contractor” doesn’t mean that’s how the law will see it.
Courts in Queensland look at the real relationship, not just the paperwork. If you look and act more like an employee — for example, you only work for one business, follow their rules, wear their uniform, and don’t carry business risk — you may actually be treated as an employee for compensation purposes.
This distinction matters because Queensland’s Workers’ Compensation and Rehabilitation Act 2003 mainly protects employees. Contractors are only covered in limited situations.
Does WorkCover Queensland Cover Independent Contractors?
Here’s how it usually works:
- Most independent contractors need their own insurance. If you’re truly in business for yourself, you won’t automatically be included in the principal’s WorkCover policy. That means if you’re injured, you’ll only have protection if you’ve taken out your own cover.
- Some contractors may still be classed as “workers.” Queensland law recognises that sometimes, contractors are so closely tied to the business they work for that they should be treated as workers under WorkCover.
You might be covered by the principal’s WorkCover policy if:
- You do the work personally (not subcontracting it out entirely)
- You don’t employ others (or if you do, you still do part of the work yourself)
- The work you’re doing is part of the principal’s usual business, not just a side job
This rule is designed to stop businesses from avoiding responsibility by calling someone a contractor when, in reality, they’re more like an employee.
For businesses hiring contractors, it’s critical to get this right. If they misclassify you and fail to provide coverage when they should have, they can face fines and be personally liable for compensation payouts.
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How to Tell If You’re Eligible for Workers Compensation
So, how do you know where you stand? Ask yourself these questions:
1. Who’s really in control?
Do you decide how and when to work, or does the business set strict hours and tell you exactly how to do the job?
2. Do you work for more than one client?
True contractors usually have multiple clients. If you only work for one business, you might be an employee.
3. Who carries the financial risk?
If you get paid no matter what and don’t risk making a loss, that points to being an employee. Contractors typically carry their own risks.
4. Are you part of the business itself?
If the work you do is central to the company’s core operations (not just an outside service), that suggests employment.
If you’re ticking more of the “employee” boxes, you may be covered by WorkCover even if your contract says otherwise.
Case in Focus: CFMMEU v Personnel Contracting
In the case of Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1, the High Court found a British backpacker doing construction work through a labour hire company to be an employee despite his contract calling him a “contractor.” The High Court made this decision because the labour hire company controlled his work and paid him directly.
Before this case, judges often looked at a long list of factors to decide if someone was an employee or contractor, which led to confusing and inconsistent results. The High Court simplified this by saying the main focus should be on what the written contract says about control and payment.
What This Means for Workers’ Compensation
This ruling matters because employees are usually covered by workers’ compensation, while contractors often are not. It is especially relevant for people working through labour hire agencies, where one company directs the work but another pays the wages.
The Court confirmed that even in these arrangements, an employment relationship can still exist if the labour hire company has enough control. This gives workers who are labelled as contractors, but who are effectively treated like employees, stronger legal grounds to challenge their classification and claim workers’ compensation if they are injured.
What to Do If You’re Injured as a Contractor
Getting injured at work is stressful enough without worrying about whether you’re covered. If you’re a contractor, here’s what you should do:
- Get medical help straight away: Your health comes first. Keep all medical certificates and reports.
- Document everything: Take photos of where the accident happened, what caused it, and your injuries. Write down names of witnesses and details of the incident.
- Tell the business you’re working for: Notify them in writing as soon as possible. Many contracts require immediate reporting of injuries.
- Check your status: Look at your working arrangement against the employee vs contractor test. You may be able to claim under the principal’s WorkCover policy if you’re effectively working as an employee.
- Explore other options if you’re not covered: If WorkCover isn’t available, you may still have a claim through:
- Negligence claims: If the business was careless (e.g. unsafe equipment, no safety gear, ignoring hazards), you may be able to sue for damages. This can cover medical costs, lost income, and even pain and suffering.
- Public liability insurance: If the business you were working for has this insurance, you may be able to claim if your injury was linked to their negligence.
- Your own policies: Many contractors have personal injury, income protection, or TPD cover inside their superannuation. These can provide financial support while you recover.
- Centrelink or disability support: In more serious cases, government benefits may help if you can’t return to work.
- Get legal advice quickly: Compensation claims have strict time limits. An expert Compensation Lawyer like ours can help you work out the best path forward and make sure you don’t miss out on entitlements.
We’re here for you
Workers’ compensation for independent contractors in Queensland can be complicated. Most contractors aren’t automatically covered by WorkCover, but some are — depending on the true nature of their working relationship with the business.
If you’ve been injured, don’t guess about your rights. The difference between being classed as a contractor or an employee could mean thousands of dollars in medical treatment, lost wages, and financial support.
At ROC Legal, we stand beside workers across Queensland, making sure they’re supported through every stage of the workers’ compensation process. Our experienced team are available in these locations:
Bundaberg Workers’ Compensation Lawyers
Hervey Bay Workers’ Compensation Lawyers
Rockhampton Workers’ Compensation Lawyers
Gold Coast Compensation Lawyers
We’ll give you clear advice on where you stand and guide you through your next steps. Reach out now to start your claim.
Check if you’re eligible for a Compensation Claim
Find out if your injury or illness is eligible to make a compensation claim. Your online check only takes 3 minutes.