I agree with your point but am a bit jaded. The govt will ALWAYS side with the ‘employee’ or at least in 99.99% of cases.
The contract protects you because if you don’t have one then the “employee” can make any claim. Plus they are tracking every single dollar.
Well, good to know, but any claim made must be substantiated. No written contract, no proof. Even the courts say that an oral contract is only worth the paper it is written on.
A debit card is usually placed under one name. If someone else uses it, say a family member (or friend/acquaintance) any transactions will take place on the card bearing that name and no others, so any tracking will only show that and nothing else. Give it to a niece to run to the store to buy some milk (and herself a bottle of pop) and the transaction is still tracked only to that one name, so I think anyone with a bit of common sense will know that they can not realistically call that "employment".