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The Fair Work Commission's past approach to determining whether a worker is an employee or contractor is "no longer good law", a deputy president has said in rejecting an unfair dismissal claim.

Baked goods manufacturer Hage Retail had objected to the claim, from a Queensland-based pastry chef, on the basis that he was not an employee.

The Commission heard that in January 2020, the organisation's managing director and the worker entered into an agreement, in the hope that the worker's skills and business associates could help secure Starbucks as a client.

This agreement involved creating a new business entity (jointly owned, including two other parties) and leasing a manufacturing plant in Brisbane. The joint venture company, which could only commence once a major client came on board, would then employ the worker to bake product to supply to prospective clients...