A recent decision by the full Federal Court will result in many contractors previously considered to be outside the scope of compulsory superannuation payments being entitled to them.

In Dental Corporation v Moffet , Dr David Moffet provided his services as a dentist to Dental Corporation under an agreement. Upon termination of the agreement, Dr Moffet brought proceedings asserting that he was an employee of Dental Corporation and was entitled to be paid annual leave, long-service leave and superannuation.

The Court found that Dr Moffet was not an employee of Dental Corporation but was an independent contractor conducting his own business. He had no entitlement to annual leave or long-service leave. However, on the issue of superannuation the Court was required to consider section 12(3) of the Superannuation Guarantee (Administration) Act 1992 .

Section 12(3) defines an 'employee' to include a person working under a 'contract that is wholly or principally for the labour of the person'. Section 12(3) can therefore apply to an independent contractor.

The court found that Dr Moffet was entitled to superannuation and this finding was upheld on appeal by the full court.