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6359.0 - Forms of Employment, Australia, Nov 2008 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 12/06/2009   
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CONCEPTUAL FRAMEWORK


INTRODUCTION

Australia's workforce continues to change. There is an increasing diversity of employment arrangements, more flexible working time patterns, and increases in the extent of part-time and casual employment.

The Forms of Employment Survey (FOES) provides information on some of the key factors relating to the nature of employment arrangements in the Australian labour market. The survey also describes some of the employment and demographic characteristics of people in different types of employment.


THE FORM OF EMPLOYMENT FRAMEWORK

This conceptual framework classifies jobholders to a 'Form of employment' on the basis of their main job, that is, the job in which the most hours are usually worked. These category groups are:

  • Employees
  • Independent contractors
  • Other business operators

Employees are then further classified according to whether they had paid leave entitlements, that is, whether they had paid sick and/or paid holiday leave.

This conceptual framework replaces the framework used in previous FOES publications. This is due to the redevelopment of the 2008 survey to better capture information on employees, independent contractors and other business operators.

Diagram: THE FORM OF EMPLOYMENT FRAMEWORK

Employees in this publication are defined as people who work for a public or private employer and receive remuneration in wages or salary. Employees are engaged under a contract of service (an employment contract) and take directions from their employer/supervisor/manager/foreman on how the work is performed.

Independent contractors are defined as people who operate their own business and who contract to perform services for others without having the legal status of an employee, i.e. people who are engaged by a client, rather than an employer. Independent contractors are engaged under a contract for services (a commercial contract), whereas employees are engaged under a contract of service (an employment contract). Independent contractors' employment may take a variety of forms, for example, they may have a direct relationship with a client or work through an intermediary. Independent contractors may have employees, however they spend most of their time directly engaged with clients or on client tasks, rather than managing their staff.

Other business operators are defined as people who operate their own business, with or without employees, but who are not operating as independent contractors. Other business operators are distinguished from independent contractors in that they generally generate their income from managing their staff or from selling goods or services to the public, rather than providing a labour service directly to a client. Other business operators spend little time working on client tasks with most of their time spent on managing their employees and/or business.


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