Introduction Understand if you are an employee or an independent contractor. This can affect how the law protects you. Content The difference between employees and contractors is whether a person works for an employer or works for themselves. For example, you are probably an independent contractor if you: do work or provide services for one or more people or businesses send invoices after you finish a task to ask for payment have an ABN (Australian Business Number) You are likely to be an employee if the person or business you work for: pays you a wage or salary pays your income tax from what you earn gives you paid holidays or sick leave (not casual employees). The Independent contractor page on the Fair Work Ombudsman's website provides more information. Use this information when you are not sure if you are an employee or contractor.