Fair Work Commission finds advisor was startup employee in unfair dismissal claim

A recent decision by the Fair Work Commission (FWC) should serve as a warning to the startup community, with an informal arrangement between a new tech business and a sales advisor being deemed employment.

Startups are naturally focused on starting up. A lot of hard work is required, often at a time when the business is barely operational and not in a position to employ anyone given the costs and complexities involved. Startups will often seek to attract talent and motivate hard work through less formal arrangements for sweat-equity, commissions, or other rewards. 

With pie in the sky expectations and a focus on survival and growth, the use of informal arrangements is understandable.