They called them a “Contractor,” the Commission said otherwise.

Some workers are told they're "independent contractors"—but when the relationship falls apart, they realise that title may have been nothing more than a legal smokescreen. In unfair dismissal cases, your official label means little if the reality of your work tells a different story.

The Fair Work Commission sees through sham contracts. And employees wrongly labelled as contractors can challenge their dismissal—even when their pay was via invoice, they had an ABN, or they signed something saying they weren’t an employee.

Take the case of Rabba v PeleGuy Pty Ltd. Rabba worked exclusively for one business. He couldn’t delegate his work to others. He was closely supervised. He sold products as an integrated part of the company’s operations. And yet—on paper—he was invoicing as a "contractor", had no leave entitlements, and managed his own tax.

The Commission saw straight through it. Rabba was, in law, an employee. His working arrangements reflected the employer’s business needs, not his own entrepreneurial freedom. This meant he was eligible to lodge an unfair dismissal claim.

In another case, two shop managers were reclassified as contractors shortly before their dismissals. But the Commission found that this change was a sham, with no real intention by either party to operate a genuine contracting relationship. The conclusion was clear: they had been employees all along and were entitled to protection under the Fair Work Act.

How do you know if you were truly a contractor?

The Commission looks at the substance of your working relationship—not just your title or contract. It can consider factors like:

• Did you work exclusively for one company?

• Were you under their control—told when, where and how to work?

• Could you subcontract your work?

• Did you use their tools, branding, or equipment?

• Did you operate your own business, or just fill a role inside theirs?

No single factor decides it. But if the answers point toward you working in someone else’s business, you may have been misclassified. And that matters, especially if you were let go unfairly.

Don’t assume you're out of options.

Misclassification doesn’t just affect tax or super. It can strip you of your right to challenge a dismissal. But the Fair Work Commission is increasingly willing to reject sham arrangements and look deeper into the facts.

If you’ve been “terminated” from a so-called contractor role, get advice. What you were called may not reflect what you were. You might have more rights than you think.