On 1 March 2007, the new federal Independent Contractors Act 2006 (Cth) (IC Act) came into force. The principal significance of this legislation is that engagers of labour will be able to take on staff on independent contracts, without concern that any State laws will affect the wages or general working conditions of those whom they engage.
This paper moves forward, and focuses on issues of concern to those enterprises that decide to engage labour as contractors. In particular, we focus on two important questions. First, are your contractors really contractors? (If not, you face the risk of prosecution under new ‘sham arrangements’ provisions in the WR Act). Second, what do you need to know about terminating the engagement of contractors? It is not enough to put a harsh ‘termination on one hour’s notice’ provision in a written contract. Contractors do have the benefit of new unfair contracts provisions, so we need to consider how those provisions, and other legal principles, may affect termination issues.
Labor and Employment Law
Date of this Version
Joellen Riley, "Independent Contracting Arrangements" (June 2007). University of New South Wales Faculty of Law Research Series. Working Paper 41.