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Employment Law
There are proposed laws that are set to give independent contractors more control over their work.
What’s the change?
Independent contractors will be able to make claims as if they are an employee if they are in an unfair contract.
This could include claims for unpaid employment entitlements like sick leave or annual leave.
Key points
Independent contractors don’t currently get the same rights as employees. New laws will give independent contractors more rights if they are in an unfair contract.
Independent contractors could make similar entitlement claims to an employee.
An independent contractor who is given little power and control over their work will be entitled to claim employee entitlements such as unpaid leave.
To avoid this, they must give independent contractors authority and control over the performance of a contract. This means independent contractors will be given more rights and freedom over the performance of their work.
Example
You engaged an independent contractor and they want to sub-contract some of the work.
You refuse and insist on them completing the work on your terms.
They have little control over the performance of their work and the contract does not recognise their authority as an independent contractor.
They could be entitled to make a claim as if you are an employee. This can include unpaid employee entitlements and the negotiation of a fairer contract.
A worker is considered ‘employee-like’ for this purpose if they satisfy any one or more of four tests:
- low bargaining power in negotiating the contract for their services;
- receive remuneration lower than an employee would for comparable work;
- low degree of authority over the performance of their work; and/or
- other characteristics prescribed by regulations.
If you have any concerns about independent contracting, we recommend seek specific legal advice.
Level Playing Field Lawyers is here to help. Call (03) 9041 4674 or email us at [email protected]
