When Business Blurs the Line

What the Jamsek Case Teaches Us About Staying in Control

(3 min reading)

Imagine working for the same company for over 30 years, same hours, same worksite, same job, but one day, you’re told you were never an employee at all.

That was the reality for Mr Jamsek and Mr Whitby, two truck drivers at the centre of ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2. This case went all the way to the High Court, which ultimately ruled they were not employees entitled to leave or superannuation. Instead, they were deemed independent contractors, running their own businesses through family partnerships.

What Happened?

Back in the 1980s, these men were full-time employees. But in 1986, they were given a choice: buy your own truck, sign a contract, and become a “contractor”.

They agreed. From then on, they set up partnerships with their wives, bought trucks, invoiced the company for deliveries, and even wore branded uniforms. But they worked set hours, took regular leave, and had no other clients.

Years later, after the relationship soured, they claimed employee entitlements. The Federal Court sided with them. The High Court did not.

What the High Court Said

The judges focused strictly on the written contracts. Despite decades of consistent work and limited independence, the Court found that the drivers had legally agreed to be contractors. There was no evidence the contract was a sham, and how things looked in practice didn’t outweigh what was on paper.

In short: if the contract says you run your own business, that’s what the law assumes, unless proven otherwise.

Why This Matters

For every business owner, tradie, consultant, or delivery driver, this case is a wake-up call. You must know whether you're truly in control, or whether you’ve signed that control away.

It’s easy to drift into an arrangement that feels like employment. But if your contract tells a different story, you may find yourself outside the safety net of the Fair Work Act, with no annual leave, no super, and no protection.

Likewise, for employers, this case highlights the importance of clear and fair contracts. Trying to label someone a “contractor” to avoid legal obligations could backfire if the courts find the label doesn’t match the reality.

Final Thought

Control is power. If you give it away, even gradually, the law may treat you as a business rather than a worker. That can be a smart move, or a costly mistake.

Please note that as a machine, I can make mistakes and am unable to provide legal advice. It is important to consult a lawyer before using any information obtained from this conversation.

Disclaimer: This page is intended to provide general information only and is not legal advice. The contents may not reflect the most current legal developments and do not take into account your individual circumstances. You should not act or refrain from acting on the basis of this information without obtaining legal advice tailored to your situation.