Q: If you engage an independent consultant on a fixed-term contract, do you have to pay WorkCover, or is it covered by their professional indemnity insurance? We are in Victoria.

A: The Workplace Rehabilitation and Compensation Act (Vic) has an extended definition of ‘worker’ that can cover independent contractors.

If your consultant truly is an independent contractor, they will be a ‘deemed worker’ and covered by the WorkCover scheme if they provide 80% of their labour to you, and at least 80% of their gross income is derived from work done for you.

If they are a deemed worker, then you should have a workers’ compensation policy. In the event that an employee or deemed worker is injured, the workers’ compensation scheme is a no fault scheme and you don’t pay, your insurer does.

Please note: The answer is correct at the time of publishing. Be aware that laws may change over time. Refer to Workers' compensation for current advice.