19 JANUARY 2026

On dairy farms, most milkers, relief milkers and farm hands are employees, not contractors, even if they have an ABN or send an invoice.

As a general rule, if someone:

• Is paid mainly for their time and labour
• Works to your roster, systems and instructions
• Uses your dairy, plant and equipment

they are very likely an employee under workplace law.

A genuine contractor is usually engaged for a specific job or outcome (such as silage making, hay making, fencing or earthworks), runs their own business, can delegate the work, and is paid for the result rather than by the hour.

Getting this wrong can lead to back-pay, superannuation, and penalties. The law looks at the true nature of the working relationship, not what you call it.

What farmers should do now

• Review anyone you currently treat as a “contractor”
• Ask: Are they really running their own business, or just working on my farm?
• Make sure milkers, relief milkers and farm hands are correctly set up as employees where required
• Use proper employment contracts and Award rates

Calling someone a contractor does not make them one. Most people doing regular milking or farm work are employees.

For more detail and dairy-specific examples, see the Contractor or Employee FAQ flyer.