An independent contractor is not strictly part of your business. They provide a specific service, and their contract ends when that service ends. Independent contractors run their own business. They usually negotiate their own fees and working arrangements and can work for more than one client at a time. Independent contractors are called contractors or subcontractors (subbies).
They have no recourse to legal remedies surrounding termination but have some rights to ‘general protections’ provisions in the Fair Work Act. The contract has no provisions for paid leave or other statutory entitlements that an employer/employee relationship includes. Having or obtaining an ABN does not automatically mean that a person will be classed as an independent contractor.
For more details check out our fact sheet