LAW-0004 · claude-haiku-4-5 (default)# Response
(a) Classification: employee
(b) The High Court adopted a **multi-factorial approach** that looks beyond the written contract to the substance of the relationship. The leading case is **Prince v Prince** (2022) 96 ALJR 1, which confirmed that courts examine the totality of the relationship, including the degree of control, integration into the business, provision of equipment, and ability to delegate, rather than being bound by contractual labels. The High Court rejected a rigid test and emphasized that the practical reality of how work is performed is determinative.
(c) One practical consequence is that the engaging business would be required to **provide workers' compensation insurance coverage** for the young labourer, as employees must be covered under workers' compensation legislation, whereas independent contractors typically are not. This creates a significant financial and compliance obligation for the labour-hire company.