Brian James has established a start-up company that is looking to deliver puncture repair kits to stranded cyclists, by drone. The company is located in Gosford, NSW, and is named "BikeDrop".

Brian operates out of a co-working space in the West End of Gosford, named "2gethA". This means he rents a desk in a large building where other start-ups companies and young professionals who are freelancing rent a desk and share a co-working space (including meeting rooms, and a receptionist).

BikeDrop requires bespoke software to be created to operate the drones it intends to use. Brian has the skills to develop the software, but doesn't have the time, as he is too busy doing the marketing and promotion for BikeDrop. Whilst at 2gethA, Brian meets Peter. Peter also rents a desk at the co-working space and is an IT specialist with skills in software development. Peter does some freelance work and operates from 2gethA so that he has meeting facilities he can use and to be able to meet other young professionals and pick up work.

Brian and Peter get talking. Brian explains what he is doing, and Peter gets excited and proposes a "collaboration". Brian makes clear that he is not interested in a business partner but does require "an IT specialist". Simon tells Marty that "work-life balance" and "flexibility" are important to him. After some emails back and forward and a few lattes, Marty and Simon agree on the following:

1. BikeDrop will pay Peter $30 an hour for softwareservices.
2. Peter will only be available between 9-6pm, Monday-Friday, and 9-12pmSaturday.
3. Peter must prioritise work for BikeDrop over work he does for anyoneelse.
4. Peter will perform 38 hours a week of softwaredevelopment.
5. Peter must continue to rent a desk at 2gethA but will move his desk next toMarty.
6. Brian will have access to the software and review it regularly and BikeDrop will "own" the software once it isproduced.
7. Brian and Peter will schedule a reoccurring meeting for "weekly software progress review andapproval".
8. BikeDrop will provide Peter with a high-powered specialist laptop to produce the software and the laptop must stay at2GethA.

Brian and Peter shake hands but do not commit anything to writing. About a week later, Peter asks Brian when he'll be paid. Brian says he will pay him on a fortnightly basis by EFT. With each deposit, Brian emails him a word document saved as "Peter Invoice" that displays the hours Peter has worked and the amount paid to him.

After a couple of weeks, Brian asks Peter to attend a series of meetings with potential clients. Because the potential clients are located overseas, the meetings are scheduled for 9pm. Brian says to Peter: "I will give you $40 for out of hours meetings". The next time

Peter is paid, he receives a separate amount on the invoice for "out of hours work". Peter referred to in meetings with potential clients as "BikeDrop's Chief Developer".

After about six months developing software,Brian and Peter travel to visit a client in Broken Hill. Whilst at a meeting, Peter's laptop battery explodes, and he is badly burned. Peter let his own insurance lapse once he started developing software for Brian, so he explores whether he is eligible for a workers compensation payment.

Assume that Peter workers compensation claim will be successfully if he is found to be an employee of BikeDrop. Is Peter an employee of BikeDrop or is he an independent contractor? Use IRAC Method to answer.

Note 1: You do not need to identify whether the valid elements of a contract exist (offer, acceptance, consideration, etc). You can assume there is a valid contract.

Note 2: Please include a reference list. The list does not count towards the word count.