Australian Bureau of Statistics

Rate the ABS website
ABS Home > Statistics > By Release Date
ABS @ Facebook ABS @ Twitter ABS RSS ABS Email notification service
6359.0 - Forms of Employment, Australia, November 2012 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 19/04/2013   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

APPENDIX 1 FORM OF EMPLOYMENT


FORM OF EMPLOYMENT

The following provides an outline of how people are classified in the 'Form of employment in main job' data item.

Persons are classified as employees (excluding owner managers of incorporated enterprises (OMIEs)), owner managers of incorporated enterprises and owner managers of unincorporated enterprises (OMUEs) based on their responses to questions in the monthly Labour Force survey (LFS).

Employees (excluding OMIEs) from the LFS are persons who:

  • work for a public or private employer; and
  • receive remuneration in wages or salary; or are paid a retainer fee by their employer and worked on a commission basis, for tips, piece-rates or payment in kind.

Owner managers of incorporated enterprises from the LFS are persons who:
  • work in their own incorporated enterprise, that is, a business entity which is registered as a separate legal entity to its members or owners (also known as a limited liability company).

Owner managers of unincorporated enterprises from the LFS are persons who:
  • operate their own unincorporated enterprise, that is, a business entity in which the owner and the business are legally inseparable, so that the owner is liable for any business debts that are incurred. This category includes those engaged independently in a trade or profession.

These people from the LFS are then asked questions in the FOES to identify key characteristics of employees, independent contractors and other business operators. The responses to these questions are then used to determine how people are classified as employees, independent contractors and other business operators in the 'Form of employment' data item.

These questions are:

"Do you work as an independent contractor in your job?"

"Do you receive a pay slip/advice?"

"Do you/Does your business invoice or bill clients/employers?"

"Excluding wages and salary, are you able to make drawings from your employer/business?"

The following decision table, shows how people are classified in the 'Form of employment' data item.

Diagram: Form of employment


COMPARISON WITH EMPLOYMENT TYPE

The data item 'Employment type in main job' that classifies persons according to the following broad categories:
  • Employees (excluding OMIEs);
  • Owner managers of incorporated enterprises; or
  • Owner managers of unincorporated enterprises

is commonly used in other Labour Supplementary Surveys.

The following table shows a comparison of the data items 'Employment type in main job' and 'Form of employment in main job'.

EMPLOYED PERSONS, Form of employment in main job - By employment type in main job - By sex

Employees (excluding omies)
With paid leave entitlements
Without paid leave entitlements
Total
Owner managers of incorporated enterprises
Owner managers of unincorporated enterprises
Total
Form of employment in main job
'000
'000
'000
'000
'000
'000

Males

Employees
3 901.7
954.5
4 856.3
13.4
16.6
4 886.3
With paid leave entitlements
3 901.7
-
3 901.7
7.7
*3.6
3 913.1
Without paid leave entitlements
-
954.5
954.5
*5.7
12.9
973.2
Independent contractors
13.9
71.2
85.1
236.7
394.7
716.5
Other business operators
-
-
-
315.0
314.1
629.1
Total
3 915.6
1 025.7
4 941.3
565.1
725.4
6 231.8

Females

Employees
3 351.7
1 193.3
4 545.0
9.3
11.9
4 566.2
With paid leave entitlements
3 351.7
-
3 351.7
*5.3
*3.5
3 360.5
Without paid leave entitlements
-
1 193.3
1 193.3
*4.0
8.4
1 205.7
Independent contractors
8.0
33.1
41.0
54.5
167.9
263.4
Other business operators
-
-
-
182.2
225.6
407.8
Total
3 359.6
1 226.4
4 586.0
246.1
405.3
5 237.4

Persons

Employees
7 253.4
2 147.8
9 401.2
22.7
28.5
9 452.5
With paid leave entitlements
7 253.4
-
7 253.4
13.0
7.1
7 273.6
Without paid leave entitlements
-
2 147.8
2 147.8
9.7
21.3
2 178.9
Independent contractors
21.9
104.2
126.1
291.3
562.5
979.9
Other business operators
-
-
-
497.2
539.7
1 036.9
Total
7 275.3
2 252.1
9 527.3
811.2
1 130.8
11 469.3

* estimate has a relative standard error of 25% to 50% and should be used with caution
- nil or rounded to zero (including null cells)


The table shows, there were 126,100 employees (excluding OMIEs) from 'Employment type' who were further defined as independent contractors in 'Form of employment' (comprising 85,100 males and 41,000 females). Similarly there were 51,200 owner managers (22,700 OMIEs and 28,500 OMUEs) from 'Employment type' who were further defined as employees in 'Form of employment'.

Of OMIEs (in 'Employment type'), 61% were further defined as other business operators in 'Form of employment' and 36% of OMIEs were further defined as independent contractors. By comparison, half (50%) of OMUEs (in 'Employment type') were further defined as independent contractors in 'Form of employment', and 48% were further defined as other business operators.

Bookmark and Share. Opens in a new window

Commonwealth of Australia 2014

Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.