Uber drivers. Deliveroo riders. Freelancers. Labour-hire workers. If you work in the gig economy or under a contractor arrangement and you’ve been injured, you may have far more legal rights than your contract suggests. Here’s what the law actually says.
The gig economy and the compensation gap
Australia’s workforce has changed dramatically. Millions of people now work outside traditional employment relationships — as independent contractors, sole traders, platform workers, or casual labour-hire employees. Most assume that if they’re not a ‘permanent employee’, they have no access to workers compensation.
This assumption is wrong in many cases — and courts are increasingly recognising it.
The key principle: substance over form
Australian courts have consistently held that what matters is the true nature of the working relationship, not what the contract calls it. Courts look at the substance of how you actually work, not just the label your engagement uses.
A 2025 Queensland decision reinforced this principle directly, finding that a worker classified as a contractor qualified as a ‘worker’ under the workers’ compensation scheme because the economic and practical reality of the relationship was one of employment. The same logic applies in NSW.
Factors courts consider include:
- Whether you work exclusively or primarily for one principal
- Whether you set your own hours or follow a schedule dictated by the engager
- Whether you supply your own equipment or use equipment provided by the principal
- Whether you can subcontract the work or must perform it personally
- Whether you bear commercial risk or are effectively guaranteed an income
- Whether you are integrated into the business’s operations
No single factor is decisive. Courts look at the totality of the relationship.
Deemed workers under NSW law
NSW workers compensation legislation goes one step further than common law. It includes specific categories of ‘deemed workers’ — people who may not meet the common law definition of employee but are nevertheless covered by the scheme.
This includes certain contractors who:
- Work under a contract primarily for their own labour
- Do not employ others to help perform the work
- Receive payment wholly or mainly for their own labour
Platform workers and the evolving law
The situation for platform workers — those who work through apps like Uber, DoorDash, or Airtasker — remains one of the most contested areas of compensation law in Australia.
Several recent decisions have begun to chip away at the idea that platform workers are always independent contractors. Courts have found that in some circumstances, the degree of control exercised by the platform over when, how, and for what rate the worker performs services is more consistent with employment than contracting.
If you work through a platform and have been injured on the job — in a road accident while delivering, or physically injured while performing a task — you should not assume you have no rights. The law in this area is actively developing in workers’ favour.
What if your workers compensation claim is rejected?
Labour-hire workers
If you work through a labour-hire agency placed with a host business, your situation may be more straightforward. Labour-hire workers are generally entitled to workers compensation through the agency — even if they feel more like an employee of the host.
However, disputes do arise about which entity is responsible, and whether you are correctly classified. Getting legal advice early prevents delays and protects your entitlements.
Time limits apply — act quickly
Workers compensation claims in NSW must generally be lodged within six months of the injury or of becoming aware of it. For contractors and gig workers who may not realise they have rights, this clock is already running.
If you’ve been injured and you’re not sure whether you qualify, don’t wait. Start your claim now or speak to our compensation lawyers for a free consultation — no win, no fee.
