Workers' Compensation Contractor Provisions Guidelines for Employers, Workers & Contractors.

What is the distinction between a 'Principal Contractor', a 'Contractor', a 'Subcontractor', an 'Independent Contractor', a 'Worker', and an 'Employee'?

When hiring a new employee, knowing whether a worker is a contractor or an employee is important for a variety of reasons. Whether you are an employee or a contractor, you will have different Taxes, Superannuation, and other Government obligations. Because of the various taxation and superannuation implications, classifying an employee as a contractor is illegal. Businesses must review all employment contracts to ensure that employees and contractors are correctly classified and that employee benefit provisions recognised under International Accounting Standard IAS 19 (IAS 19) reflect this.

As a result, distinguishing between an employee and a contractor is critical for ensuring that your company provides appropriate employee leave benefits and accounts for them in your financial statements. IAS 19 Employee Benefits, in particular, specifies the requirements for recognising and measuring various types of employee benefits, such as the amount and timing of recognition.

Before entering into an agreement with a new employee, you must determine whether he or she is an employee or a contractor. Employees are usually part of a larger organisation. A contractor operates their own company with their own Australian Business Number. Use the ATO online tool to determine whether your worker is an employee or a contractor. See Australian 'Taxation Office (ATO) Decision Tool'.

The term "coverage" in the context of workers' compensation differs from that of other types of insurance, where coverage frequently refers to monetary limits or the agreed-upon scope of a policy. In this context, coverage refers to the ability to file a claim under a workers' compensation scheme.?

In Australia, Workers' Compensation Schemes generally consider three core criteria to determine whether a worker can claim workers' compensation for a specific injury or illness.

The rules of the specific workers' compensation scheme in their jurisdiction will determine whether a worker is covered by workers' compensation.

• the claimant must be covered as a worker or deemed worker under the applicable scheme (coverage),
• they must have suffered a compensable injury or illness (or death), and
• there must be a causal link between the injury or illness and the claimant's employment (work-relatedness).

When reviewing contractor provisions, the High Court considered the following factors.

Employees have rights under different laws, such as sick leave, the ability to use the unfair dismissal authority, and the requirement to purchase workers' compensation insurance, but contractors do not. If the court rules that the contractor is an employee, there may be claims for employee benefits. The High Court focus on the terms of the contract agreed upon by the parties rather than the parties' conduct after entering into the contract.

It makes no difference how a relationship is labelled or how the parties perceive the characterisation of the relationship. The method of remuneration, the provision and maintenance of equipment, and the work obligation are all taken into account by the Court. Working hours, leave (holiday), work delegation, and who has the authority to direct and control.

Three important factors:

The recent High Court decisions are based on three factors:

*A right to control the individual in the contract will point towards employment.

*An obligation to provide significant equipment will point towards contracting.

*Payment at an hourly rate will support employment.

Employers must ensure that workers' compensation insurance covers all employees for work-related injuries.

Contractors and subcontractors who are defined as workers under the Workers' Compensation and Injury Management Act 1981 may also be entitled to workers' compensation (the Act).

Difference Between "Employees" and "Contractors"

How to tell if a worker you hired is a contractor?

In general, as a contractor, you are not entitled to paid sick leave if you are unable to work due to illness or injury. Furthermore, if you are injured at work, you may not be entitled to workers' compensation benefits. This generally means that you are responsible for arranging your own income protection insurance.

The distinction between an independent contractor and an employee is important. If you are deemed to be an employee rather than an independent contractor, you may be required to pay their Superannuation, Holiday pay, Health insurance, Other benefits, Tax, and so on.

In most cases, an independent contractor is hired for a single project or time period. Owns and operates their own business. Invoices are submitted under their own company name and ABN. Pays their own GST, Tax, and Superannuation, and is frequently paid on an hourly or outcome basis. Is responsible for their work and liable for the costs of correcting any errors. Finishes the job using their own tools and equipment. Has complete control over how and where work is completed (subject to any contract), and can subcontract or delegate work to another independent contractor.

Why should you keep an "arm's length" relationship with your contractor?

To avoid incurring Superannuation, holiday pay, health insurance, other benefits, tax, and other obligations, you should maintain an 'arm's length' relationship with any contractor, freelancer, or consultant. You should also hire your service provider on a short-term basis and ensure that they are not performing "normal everyday business functions" on a continuous basis. Otherwise, you run the risk of invoking the ATO's 'employee' provisions. A well-written Contractor Agreement (along with your contractor's own business structure and ABN) will help clarify the contractual relationship and ensure there is no implied 'employee/employer' relationship.

The Guide

We must first review the definition before we can assess and determine whether your contractors are considered workers by WorkCover Authority.

How do you know if a contractor you hired is a deemed worker for WorkCover insurance?

These guidelines are intended to assist you in determining whether a contractor you hire may be considered your worker for WorkCover insurance purposes. It is your responsibility as an employer to determine whether your contractors are considered workers by WorkCover Authority in your state or territory. Contact myWorkCover if you need assistance.

If your contractor is a deemed worker, your total declared remuneration to the WorkCover Authority will be affected, which is one of the key factors that determine your premium and whether you must register for WorkCover insurance.

Related reading: How Do WorkCover Claims & Other Factors Impact Your Premium?

If you consider the contractor to be a worker, you effectively become their employer for WorkCover insurance purposes, and you must include the total contract payments, minus GST and any prescribed contractor deductions (which vary by state or territory). Regardless of the contractor's business structure, determining whether your contractor is an employee is a critical step that must be completed.

You are breaking the law if you are not registered for WorkCover insurance and are not paying the correct premium. You risk having to pay the full amount of the overdue premium, plus penalties.

Contractor Provisions under Labour hire providers & Adhoc workers

These rules do not apply to you if you hired an individual through a labour-hire (or on-hire) company and paid that company for the work done in your business. It is critical to get this right because failing to register for WorkCover insurance and pay the correct premium is against the law. You risk having to pay the premium that should have been paid, as well as penalties of up to 100% of that amount.

These regulations also do not apply to owner drivers, door-to-door sellers, timber contractors, taxi drivers, share farmers, insurance sales agents contracts, outworkers, or athletes. Although exemptions may differ from state to state.

Insurance sales agents' contracts

Where services are provided to a person (for example, an insurance company) in order for that person to sell insurance policies. Contracts under which a person is supplied with services solely for, or in relation to, the procurement of persons desiring to be insured by the person are exempted. The exemption applies to contractors who sell general and life insurance for insurance companies on a commission basis. Commissions from the sale of other non-insurance products are not exempt.

Door-to-door sellers

For WorkCover insurance purposes, a door-to-door seller performing work under a selling arrangement is not a worker of the hirer/vendor unless WorkSafe determines that the arrangement was entered into with the intent of directly or indirectly avoiding or evading the payment of WorkSafe premium. A door-to-door seller is someone who is engaged by a hirer/vendor under a contract or selling arrangement.

See Understand whether door-to-door sellers are considered workers for the purposes of WorkSafe.

Outworkers

Outwork is contract work in the clothing industry that involves packing, processing, or working on articles or materials. This work must be completed outside of the hirer's factory or workshop, as well as in or near a private residence or other non-commercial or business premises. If an outworker signs a contract with a hirer other than the outworker's family business, the outworker is considered a worker of the hirer for WorkCover insurance purposes, as long as the outworker does some of the outwork personally. If a family business enters into a contract with a hirer to perform outwork, each person hired by the family business to perform outwork under that contract is considered a worker of the hirer for WorkCover insurance purposes.

Taxi drivers

For WorkCover insurance purposes, when one person (the driver) has use of a motor vehicle under a bailment contract with another person (the operator) and transports passengers for a fee and is required by the contract to pay the operator for the use of the motor vehicle, the operator is considered the driver's employer. The amount received by the driver for transporting passengers less than the amount paid or payable to the operator for the use of the motor vehicle must be declared as rateable remuneration by the operator for WorkCover insurance purposes if the operator is the driver's employer.

Sharefarmers

The sharefarmer may be the landowner's employee if a contract between the landowner and a person (the sharefarmer) states that the sharefarmer will receive a percentage of the property's earnings (in cash or in-kind) in exchange for working on the land. The sharefarmer must earn less than one-third of the land's income to qualify as the landowner's employee, or the written sharefarming agreement must state that the landowner is liable for the sharefarmer if they are injured while performing sharefarming duties (for instance, under Victorian workers compensation legislation).

Sporting contestants/athletes

If an employer engages a person to participate as a contestant in a sporting or athletic activity (other than in relation to section 19 of the Racing Act), the person is not considered a worker for WorkCover insurance purposes while participating as a contestant; engaged in training or preparation for the contest, or travelling between a place of residence and the place where the person is participating or travelling.

Timber contractors

A timber contractor is someone who is hired by a hirer to fell trees and deliver the timber to the hirer; cut firewood and deliver it to the hirer; fell trees or cut shrubs on the hirer's land; clear stumps or logs from the hirer's land; and remove stumps or logs, whether by loading them onto a vehicle or otherwise.

A timber contractor is an employee of a hirer who: is engaged in or for the purposes of the hirer's trade or business; is a natural person or a partner in a partnership and agrees to work for the hirer under a timber contract.

A timber contractor is not a worker: if the timber contractor subcontracts the entire timber contract; does not personally perform any work under the timber contract and employs or engages others to perform all of the work under the timber contractor is a partner in a partnership of two or more individuals and no part of the work under the timber contract is personally performed by any member of the partnership.

Difference between 'Contract of Service' & 'Contract for Service'

It is not always easy to tell the difference between an independent contractor and an employee. A contract of service exists between you and your employee, but a contract for service exists between you and an independent contractor. The distinctions are subtle, but they are important.

An employee usually follows their boss's orders. A contractor runs their own business and offers a service; they typically work the hours necessary to complete a task and have complete control over how they work. However, even these factors are insufficient to determine whether someone is an employee or an independent contractor.

A court or tribunal considers the entire picture (the totality of the relationship) as well as all possible factors (a multi-factor test), including:

• The degree of control over how and when work is completed.
• Work hours
• The expectation of ongoing work
• Financial risk-taking
• Who provides the tools and equipment?
• Payment Method
• Leave entitlements
• Capability to work for other companies
• Right to delegate or subcontract

If you misrepresent to your worker the nature of your relationship, this could be considered a sham contracting arrangement under the Fair Work Act 2009 (the Act).

Contract of Service

What the Act says

Section 5 (primary definition):

“…“worker” does not include a person whose employment is of a casual nature and is not for the purpose of the employer’s trade or business,… but save as aforesaid, means any person who has entered into or works under a contract of service or apprenticeship with an employer, whether by way of manual labour, clerical work, or otherwise and whether the contract is expressed or implied, is oral or in writing; …”

To determine whether or not a person is entitled to compensation, we must first determine whether or not they are a worker as defined by legislation and common law principles. Many contractors and subcontractors may be classified as workers under the primary definition if they lack independence in their operations and do not run a genuinely independent business or enterprise.

The employer-employee relationship has long been recognised in common law, but with so many new work situations, the definition of the term is changing. The relationship between the employer and the employee is referred to as the 'contract of service.' This is what is known as a master-servant relationship. A 'contract for service' is any agreement to do work if there is no contract of service. Contracts can be verbal or written, defined or implied.

Important Note:

A person cannot contract out of their legal rights. This means that signing a contract stating that a person is not a worker does not change their status.

The terms of a contract reveal the nature of the contractual relationship. Contracts that claim to define a?relationship as independent contractors and principals cannot alter the true nature of the relationship. The facts and/or behaviour of the parties reveal the true nature of the relationship. The rights and obligations created by the contract, rather than the label the parties apply to it, must determine the characterisation of a contractual relationship.

A large part of the workforce works under a 'contract of service' including:

• full-time and part-time workers
• casuals (working for an employer’s trade or business)
• seasonal and piece workers
• workers on salary or wages
• workers supervised and controlled by an employer
• workers who may be fired by an employer
• workers who work for only one employer; and
• workers with set hours of work.

Although no definitive statement can be applied to determine whether a contract of service exists, it is generally clear whether a person is working under such a contract, i.e. the relationship is one of employer-employee, and the employer must take out workers' compensation to cover that employee. There are several factors that distinguish service contract employees from independent contractors. No single factor alone indicates a contract of this type. Instead, consider the entire employment relationship.

Control Test

If a principal has the authority to direct what work an individual does, how they do it, and when they do it, the individual is most likely a worker (working under a 'contract of service'). The control test will differ depending on the industry standards and the nature of the work performed by the contractor. The ability or right to exercise such control over how duties are performed is used to determine a contract of service, not the actual exercise of control.

The level of control over a worker is the most important indicator of the existence of a contract of service. If the worker's work is directed and controlled by the other person, an employer-employee relationship is more likely to develop. However, if the worker agrees only to produce a specific result but is not subject to control in doing the work, the relationship is more likely to be classified as principal/independent contractor.

The following factors are not meant to replace the control test, but they can help determine whether or not the control test is met. Determine whether the worker has no right to delegate his or her work, no right to hire others to perform his or her contractual obligations, is usually required to work at set times and is usually required to work at the employer's place of business or other locations as directed or approved by the employer.

The integration test

Entails that a worker is typically an integral part of, or is presented to the public as an emanation of, the principal's business (ie the employer). In the course of performing his or her duties, a worker has no ability to accumulate goodwill or sellable assets.

The results test

If an individual is hired to produce a specific result or complete a specific task, he or she is more likely to be an independent contractor. Workers, on the other hand, usually fill a position and have an ongoing role that is unrelated to a specific task. In contrast to an independent contractor, a worker is typically paid on a regular basis regardless of the work performed (e.g., fortnightly). It should be noted that the Results Test is not a reliable universal predictor and is subject to legal challenge.

The risk test

If work is not completed satisfactorily, independent contractors are more likely to face commercial risks. They will be required to correct defective work or may be sued for any losses or damages caused by defective work. Workers are rarely exposed to these hazards. Other factors include whether a worker incurs no (or minimal) costs while performing his or her duties, and whether or not the worker has the ability to profit or lose while performing his or her duties. You can apply these tests to a contractual relationship using the online contractor assessment tool on the ATO Tool Kits.

Remuneration

When remuneration is based on time spent on the job, the relationship is likely to be one of service and employer-employee. When the contract relates to services provided (i.e. a contract for services), remuneration is more likely to be based on results or levels of production.

Working hours

Working hours specified in a contract imply higher levels of control and supervision. This, in combination with other factors, may indicate the existence of a service contract and an employer-employee (worker) relationship.

Minimum entitlements

Independent contractors don’t get other entitlements that employees get such as leave and notice of termination unless they negotiate for these entitlements to be included in their contract. Independent contractors do not have a minimum wage or pay rate because they are not employees. Instead, independent contractors usually negotiate payment for the services they provide as part of their contract.

The right to employ others

If a person is entitled to delegate their work and employ others to do the work for them, then the relationship is more likely to be a contract for service, than a contract of service.

Equipment

Generally, the higher the level of material and equipment provided for the worker, the more likely it is that he or she is employed under a contract of service.

Termination

A right to dismiss a worker does not by itself indicate a contract is a contract of service. However, it is a further example of the right to control a worker and may indicate that one party has effective control of the conduct of the work of another.

Terms of the contract

Just because two parties enter into a contract, which says the relationship is one of principal and contractor, does not necessarily mean that such a relationship is established under the Act. If all other factors indicate the relationship is of another kind, then the parties’ expressed intentions do not alter its true nature. However, an express provision in the contract will bear greater significance in law if the relationship is ambiguous.

Contract for Service

What the Act says: Section 5 (extended definition)

(a) “…any person to whose service any industrial award or industrial agreementapplies; and

(b) any person engaged by another person to work for the purpose of the otherperson’s trade or business under a contract with him for service, the remuneration by whatever means of the person so working being in substance for his personal manual labour or services…”

A Contract for Service is an agreement between a company and a self-employed individual in which the company agrees to pay the individual for a limited amount of service without the individual formally becoming an employee. Thus we refer to this self-employed individual as a "Contractor or Subcontractor". The contract will specify the nature of the contracted work, its compensation, and any other information deemed necessary for contract clarification.

People not employed under a "Contract of Service" may still fall under the extended definition of worker in the Act, i.e. they are under a contract for service. These include many independent contractors and sub-contractors. Two major factors must be satisfied before someone can be defined as a worker under the extended definition:

• they must be engaged by another person to work for that person’s trade or business; and
• the remuneration must be in substance for his or her personal manual labour or services

To determine whether a worker falls within part of the extended definition, it is necessary to establish what the worker is paid for.

The meaning of the term ‘in substance’

The phrase "in substance" broadens rather than narrows the extended definition of a worker. Payment received for reasons other than providing manual labour or services does not invalidate the definition. However, the other reason must be minor in comparison to the payment made for labour or services.

Consider the following factors when determining whether or not the remuneration is in substance for personal manual labour or services:

• the provision of plants and equipment;
• the provision of additional labour or personnel; and
• the provision of administrative or other services not directed at the actual work (such as preparation, drafting, typing and secretarial services).

The meaning of engaged for the purpose of the employer’s trade or business

Those who carry out the actual activities of the employer's business are likely to be hired for the purpose of the employer's trade or business; for example, a roof tiler sub-contractor hired by a roof tiling company. People performing activities related to the efficient operation of the employer's trade or business, for example, a fencing contractor hired to replace fencing on a sheep station, are also likely to meet the definition.

Defining a worker’s status Contract for Service

A contract can be used for services for a one-time job or for an ongoing position that does not have an end date at the time the contract is signed. A typically written contract for services will define the work description and scope, the cost of the job, when payments will be made, how disputes should be handled, and other assurances. In the type of service contract, a client may pay at the start of the service, during the service, or at the end of the service.

Depending on the nature of the services being contracted, a contract for services may include a variety of different provisions, such as those relating to indemnity, liability, property return, and legal expenses, but the following details should be included in any contract for services:

• Contact Information:?The names and contact information of the parties involved, as well as any contract terms that require clarification, should be stated.
• Description of Services:?The services that will be provided should be thoroughly described. To reduce the possibility of a contract dispute later on, vagueness should be avoided to the greatest extent possible. The more detailed you make this description, the less chance you'll have of later misunderstandings arising. For example, if the contract is for construction, the materials, equipment, and completion date should all be specified.
• Terms of Payment:?A compensation schedule should be included in the contract. When making a one-time payment, the amount, time, conditions, and type of payment (cash, check, etc.) must all be specified. If the payment will be made in instalments, the above information, as well as provisions for dealing with late payments, must be included.
• Confidentiality, Non-Competition, and Non-Solicitation:?Some may believe that including clauses that address these concerns is a good idea, depending on the nature of the services being contracted. If trade secrets and other sensitive information are involved, confidentiality (as in a non-disclosure clause) is required; non-competition and non-solicitation are required if the contractor may be able to unfairly compete or draw off business through the contract.
• Ownership rights:?If anything is produced during the performance of the service, whether it is a material object or intellectual property, the ownership of such items, including products of a prematurely terminated contract, should be addressed.
• Information about dispute resolution:?Explain how disputes can be resolved under the contract.
• Contractual clauses: Some contracts contain additional information. These clauses are typically optional and will be determined by your individual circumstances. Indemnification, legal expenses, liability, property return, warranties, and any relevant insurance and/or compliance requirements are examples.

You may use a contract for services for a variety of types of jobs,?gigs, and services. For examples of those defined as working under a contract for service include, contractors/sub-contractors who perform the actual activities of the employer’s trade or business i.e. catering contracts, freelance writer contracts, shipping contracts or construction contracts, manufacturing or transportation work, such as production, shipping, or storage, lawn care services, legal services, office work such as human resources, financial services, or administrative services etc.

A contractor/sub-contractor may be self-employed or have an Australian Business Number, but could still be considered a worker of a person who engages them, pursuant to the Act. A contractor/sub-contractor may use their own hand tools, but if this is not a significant factor for what he/she is paid for, it will not matter for the purpose of satisfying the extended definition. In each case, if the sub-contractor does not supply materials and does not employ any workers, he or she may be defined as being paid, in substance, for his or her personal manual labour or services and be defined as a worker. If the contractor/sub-contractor supplies significant materials and/or employs workers, then there is doubt whether he or she would be a worker under the Act.

Contract for Services or Contract for Goods

Despite the fact that both set performance standards and may include force majeure provisions, or allowances for what is commonly referred to as "acts of God," which may delay or prevent contract completion without the service provider being at fault, a contract for services should not be confused with a contract for goods. Both impose legal obligations on the contracting parties and require a thorough review.

However, the differences between these two contracts are significant, and they include:

• Contracts for Goods involve the physical delivery of goods, whereas
• Contracts for Services involve the completion of tasks.

For example, goods contracts may require the negotiation of a shipping contract with a third party to transport the goods from the producer to the contracting party. Contracts for goods are governed by laws that differ from contracts for services. Seek legal advice if you are unsure whether a "contract is for services" or "contract for goods".

Definition:

"Worker" or "Employee"

While no uniform definition of worker exists in Australian workers' compensation schemes, most schemes will consider whether a person is engaged through a contract of service or is an employee for PAYG tax assessment to determine if they are a worker. The definition of the worker can be summarised by jurisdiction, noting that some schemes use the term "employee", while others use the term "worker", with slightly different definitions of those terms in each scheme.

As an employee, you:

• can't pay someone else to do the work
• receive payments for the amount of time (normally hours or shifts) you work, for each item or for each activity you do and as commission
• use tools, equipment or other assets that either?your employer (work) gives you to do your work; or you provide to do your work, but the business you work for gives you an allowance or pays you back for the cost of the items
• don't personally pay for mistakes, the business you work for is responsible if you make a mistake and they pay for the cost of fixing it
• follow any reasonable work requests your supervisor or the business you work for makes
• are seen to be part of the business and are not independent of it.

Deemed Worker

What the Act says: Section 175(1)

“Where a person (in this section referred to as the principal) contracts with another person (in this section referred to as the contractor) for the execution of any work by or under the contractor and, inthe execution of the work, a worker is employed by the contractor, both the principal and the contractor are, for the purposes of this Act, deemed to be employers of the worker so employed and are jointly and severally liable to pay any compensation which the contractor if he were the sole employer would be liable to pay under this Act.”

The individual who is deemed to be the worker under a contractual arrangement is referred to as a "Deemed Worker". Schemes also differ in terms of the types of workers considered to be deemed workers under the applicable workers' compensation scheme. It can summarise the definition of a deemed worker by jurisdiction, keeping in mind that all schemes have slightly different definitions. Some jurisdictions consider certain types of contractors to be deemed workers. When a contractor's workers are under the control and direction of a principal contractor, the principal contractor may be held liable (along with the contractor) for the contractor's workers. Workers' compensation liability may also arise when a worker is employed under contractual arrangements that are intended to avoid the employer's liability under the Act, such as requiring the worker to incorporate (form their own company) as a condition of receiving a contract.

Even if they were hired as independent contractors, some workers in certain industries are considered employees. These workers are referred to as "deemed employees." Deemed employees are entitled to the same benefits, insurance, and treatment as regular employees.

Contractors

Contractors, as opposed to employees, own their own businesses and sell their services to others. Contractors, also known as independent contractors, subcontractors, or subbies, typically complete the work using their own processes, tools, and methods. They usually negotiate their own fees and working conditions, and they can work for more than one client at once. Contractors have workplace rights and protections, but they also have different insurance, taxation, and superannuation responsibilities.

As a contractor, you:

• can pay someone else to do the work instead of you
• receive all or the majority of the amount of your quote once you finish the work (to an agreed standard)
• supply an invoice to the other business before they pay you
• bring to the job all or most of the things (tools and equipment) you need to do your work
• have to buy or hire your tools of trade or any equipment you need to do the work
• are responsible for fixing your own mistakes at your own expense
• can do the work in any way you like as long as you complete the work to an agreed standard, or to the specific terms in your contract or agreement
• are operating your own business independently – meaning you complete the tasks or services as agreed to in your contract or agreement and are free to accept or refuse extra work.

Independent Contractor

An independent contractor is a self-employed person who provides services to clients. It is also referred to as contracting or subcontracting. Independent contractors typically register as sole proprietors and operate their businesses under their own Australian Business Number (ABN). However, you can also be a contractor who works for your own company, partnership, or trust.

Any business structure (e.g., an individual, consultant, sub-contractors, company, partnership, sole trader, trustee) that enters into a contractual arrangement with a hirer for the performance of services is considered an independent contractor. An independent contractor is an entity that agrees to produce a specific result for an agreed price. The well-known multi-factor test used by Australian courts is generally applied to determine whether a worker is an independent contractor for workers' compensation schemes.

Independent contractors are typically hired for a specific task and invoice the client once completed. They are compensated for the results they produce and are personally responsible for whether or not their company makes a profit. You are not entitled to all of the conditions in the National Employment Standards or an award as an independent contractor. This includes minimum wages, annual and sick leave, and termination notice. Instead, with each contract, you negotiate your own rates, allowances, payment terms, and additional conditions. Independent contractors perform agreed-upon services under the terms of a contract. They usually negotiate their own fees and working conditions, and they can work for more than one client at the same time. Contractors and subcontractors are terms used to describe independent contractors.

You are legally responsible for your own work as a contractor. As a result, you will face commercial risks that you would not as a regular employee. If you are a sole trader, you may not be entitled to workers' compensation, so it is a good idea to arrange your own personal accident protection insurance.

Independent contractors are generally not entitled to take annual or personal leave, or receive redundancy payments. Independent contracting is common in accounting, bookkeeping, engineering, freelance photography, IT, technical service, real estate, sales, truck driving, plumbing, electrical work etc.

Subcontractor

While the terms contractor and subcontractor may appear to be interchangeable, there are significant differences in how these roles operate and the nature of their agreements. Because they are businesses, contractors typically negotiate the scope of work, which may include a project timeline, work hours, services provided, and payment method.

Many contractors frequently rely on subcontractors to complete specific tasks that they are unable to complete themselves, but they are still generally responsible for delivering the entire completed project to their clients. A roofing subcontractor, for example, may be hired by a building contractor to repair the roof on a home renovation project. In this case, a subcontractor agreement exists between the subcontractor and the contractor, outlining the terms of the contract agreement reached between contractors.

Under the Workplace Health and Safety Act of 2004, subcontractors, like independent contractors, have the right to a safe and healthy workplace. (Vic).

If an independent contractor hires a subcontractor to do work under a contract, the independent contractor may be required to pay the subcontractor superannuation or workers' compensation. If you are an independent contractor who is unsure of your obligations or a subcontractor who is unsure of your entitlements, you should seek legal advice. While a principal may have obligations to an independent contractor (as discussed above), it is highly unlikely that it will have obligations to the subcontractor because the parties do not have a contract. This is because the subcontractor entered into a separate agreement with the independent contractor from the client's agreement with the independent contractor.

In the multi-factor test, the following factors must be weighed and balanced:

• Is it possible for an employee to set his or her working hours?
• Is it necessary for the worker to provide their tools and equipment?
• How is the employee rewarded?
• Is the employee liable for the cost of repairing or correcting any flaws?
• Is the worker liable for the cost of correcting any flaws or repairing the damage?
• Is the worker required to do the work personally, or can the work be delegated?
• Is the worker given the option of accepting or declining the job?

Except for the requirement of personal service, none of the other factors is conclusive. Instead, when determining the nature of a work contract, the court considers all relevant factors. Despite the fact that control is still an important factor, the High Court has stated: "It is the totality of the relationship between the parties which must be considered".

Safe Work Australia Workers’ Compensation Coverage Paper

Principal Contractor

The role of the principal contractor is critical in managing the work health and safety risks on construction projects. A principal contractor is a legal entity in charge of construction health and safety management. The procedures for appointment or engagement, as well as the obligations of principal contractors, differ between the Commonwealth, states, and territories. The requirement to appoint or engage a principal contractor can have a significant impact on property owners, tenants, developers, and contractors.

Engaging a Principal Contractor

A principal contractor is a person conducting a business or undertaking (PCBU) who commissions construction work valued at $250,000 (SA is $450,000 or more) (often referred to as the client). A client, on the other hand, can appoint another PCBU as a principal contractor by authorising them to have management or control of the workplace where the construction work will take place. It is recommended that any authorisation or appointment regarding the principal contractor be documented and signed by the relevant parties to ensure a clear definition of roles.

The?Work Health and Safety Regulation 2011?(WHS Regulation) defines a construction project as any project that involves construction work where the cost is $250,000 (SA - $450,0000) or more. Work valued at less than $250,000 (SA - $450,000) is not considered a construction project. However, in this situation, the contractor would not inherit the additional duties of a principal contractor under part 6.4 of the WHS Regulation. A client can authorise a contractor to have management or control of a workplace for construction work that is valued at less than $250 000 (and is therefore not a construction project).

PCBUs whom commission construction work must understand their obligation to influence safety through agreements and arrangements with the person hired to do the work. This includes inquiring about how the work will be done to ensure that any potential hazards are adequately controlled.

Related reading: Definition of a PCBU: a person conducting a business or undertaking

Principal contractors for construction work valued at $250,000 or more

In addition to their duties as a PCBU, each construction project will have a principal contractor who has specific duties under the WHS Regulation. A construction project encompasses all aspects of the construction process. The contract price for carrying out the work determines the cost of construction work. Project management costs, fittings and furnishings costs, and any taxes, levies, or charges payable in connection with the work, excluding GST, would all be included.

What is a Construction Project?

A construction project encompasses all aspects of the construction process. The contract price for carrying out the work determines the cost of construction work. Project management costs, fittings and furnishings costs, and any taxes, levies, or charges payable in connection with the work, excluding GST, would all be included.

The cost of the construction work should not include:

• the cost of the land on which the development is to be carried out
• the costs associated with marketing or financing the development, including interest on any loans
• the costs associated with legal work carried out or to be carried out in connection with the development.

Principal contractors are governed by different legislation

The engagement of a principal contractor is fundamental to managing WHS risk in construction projects.

Harmonised jurisdictions

Under the harmonised legislation, the provisions relating to a?principal contractor?only apply to a ‘construction project’ which is defined as a project that involves construction work with a value equal to or exceeding $250,000 and in South Australia, it is $450,000.

• Commonwealth -Work Health and Safety Act 2011?(Cth) and the?Work Health and Safety Regulations 2011?(Cth)
• Australian Capital Territory - Work Health and Safety Act 2011?(ACT) and the?Work Health and Safety Regulation 2011?(ACT)
• New South Wales - Work Health and Safety Act 2011?(NSW) and the?Work Health and Safety Regulation 2011?(NSW)
• Northern Territory - Work Health and Safety (National Uniform Legislation) Act 2011 (NT)? and the?Work Health and Safety (National Uniform Legislation) Regulations 2011?(NT)
• Queensland?Work Health and Safety Act 2011?(Qld) and the?Work Health and Safety Regulation 2011?(Qld)
• South Australia - Work Health and Safety Act 2012?(SA) and the?Work Health and Safety Regulations 2012?(SA)
• Tasmania?Work Health and Safety Act 2012?(Tas) and the?Work Health and Safety Regulations 2012?(Tas).

Non-harmonised jurisdictions

• Victoria - Occupational Health and Safety Act 2004?(Vic) and the?Occupational Health and Safety Regulations 2007?(Vic)
• Western Australia - Occupational Safety and Health Act 1984?(WA) and the?Occupational Safety and Health Regulations 1996?(WA).

Victoria

If the construction project is worth $350,000 or more and the contract to perform the construction work was entered into on or after July 1, 2014, you must appoint a principal contractor in Victoria. (or $250,000 or more if the construction contract for the project was signed prior to July 1, 2014). As an owner commissioning construction work in Victoria, you will have few responsibilities. This is a significant distinction between Victorian OHS law and the rest of Australia's work health and safety legislation.

However, to the extent that you have control or management of the workplace, you must ensure that the workplace and the means of entering and leaving it are safe and free of health risks. This means that if you hire a builder to do office fit-outs and the builder does not have complete control or management of the workspace, you must still comply with this requirement.

For example, you may have hired a builder to do office fit-out work on the premises while still occupying and using a portion of the space. This means you have control over a portion of the site and must follow this regulation. You should make sure that your contract with the builder specifies who has control of the workplace.

If you have appointed another person as the principal contractor, you could still face a penalty for your remaining obligation, as outlined in the table below.

The Vic Regulations automatically consider the owner of the workplace where the construction work is to be done to be the principal contractor. The owner may appoint another person as the principal contractor, but that person must be authorised by the owner to manage or control the workplace to the extent necessary to discharge the duties of the principal contractor. Although not required, an owner should appoint a principal contractor in writing.

The Vic Regulations make no restrictions on who can be appointed as a principal contractor. In the case of domestic construction work, however, if an owner hires someone to manage or control the workplace, the owner is automatically deemed to have appointed that person as the principal contractor.

As in the harmonised jurisdictions, there is no obligation to appoint a principal contractor. If an owner fails to appoint a principal contractor, the owner is taken to be the principal contractor.

Western Australia

Every construction project (with a value of $250,000 or more) must have a principal contractor, according to the harmonised legislation. According to the harmonised legislation, the person conducting a business or undertaking (PCBU) who commissions the construction project is the project's principal contractor unless the PCBU:

• engages another person conducting a business or undertaking as principal contractor for the project; and
• authorises the principal contractor to have management or control of the workplace and to discharge its duties.

If this occurs, the person hired becomes the project's primary contractor. The Western Australian regime employs the concept of a "main contractor."

The main contractor is:

• someone for whose direct benefit the work is done; or
• a person engaged by the person referred to above to cause the construction work to be done but is not an employee.

When a PCBU hires another person to be the project's principal contractor, the PCBU must provide the new principal contractor with any information they have about hazards and risks in the vicinity of the workplace where the construction work is to be done.

When small business owners (principals or main contractors) hire independent contractors, they have a duty of care under Section 19 of the Occupational Safety and Health Act 1984 to ensure the contractors' safety and health (the OSH Act). Specifically, if the contractors will be exposed to hazards and risks associated with performing tasks on behalf of the company, a safe system of work must be prescribed for them. Contractors are a part of the work system that the principal is directly responsible for. As a result, the law requires that the principal's duty to the contractors be the same as an employer's duty to its employees (section 23D of the OSH Act).

The "hands off" approach with contractors

Some companies believe that by avoiding liability for safety and health responsibilities, they can avoid liability if contractors cause work-related injuries and incidents to themselves, their employees, or third parties. This could be wrong. Under the duty of care, everyone in the workplace is accountable for safety and health. Regardless, the extent of the parties' responsibilities is determined by their level of control over the situation. In cases where the principals demonstrated sound risk management practices and a safe system of work, the courts were more lenient. The 'contract conditions' forbid principals from delegating responsibility for workplace safety and health to contractors.

The "main contractor" is not strictly appointed but is determined by the Regulations

In Western Australia, the "main contractor" is not strictly appointed but is determined by the Regulations. In addition to any "deemed" main contractors, the WA Regulations require designers, clients, and employers to consult with one another to ensure that the construction work can be completed safely and healthfully. The main contractor and the client may be the same person, depending on the nature of the contracting arrangements and the specific circumstances of the project. In that case, the client must follow the WA Regulations main contractor and client requirements.

There is no requirement to appoint a principal contractor, and unless another PCBU is engaged, the harmonised legislation states that the PCBU that commissions the project is the default principal contractor. Failure to appoint a principal contractor has no other ramifications.

The WA safety legislation imposes a number of duties and obligations on a principal who is deemed to be the "main contractor" by the legislation. Some of these responsibilities are shared (for example, between the principal and the site supervisor), while others fall solely on the main contractor. While these responsibilities are not always onerous, noncompliance is an OHS violation that can result in a monetary penalty.

If there is a safety incident (especially one involving serious injury or death), a violation of a "main contractor" obligation may be compelling evidence of a violation of one of the Act's broader safety duties.

Breach of these can attract a much higher monetary penalty:

• up to $500,000 for a first offence, and
• $625,000 for subsequent offences at the time of printing.

Section 293 of the WHS Regulation states that a construction project can have only one principal contractor at any specific time.

• First, at any given time, a construction project can only have one primary contractor. The conceptual basis for this is obvious. Because the principal contractor has management or control of the workplace, it would be inconsistent if that power was conferred on more than one PCBU at any given time. However, there are a few considerations that arise from this rule. To begin, there is nothing preventing more than one principal contractor from being engaged in a project as long as no more than one is engaged at any given time during the project's life. A primary contractor may "pass the baton" to another (although, as discussed above, the engagement of any principal contractor must be made by the default principal contractor). If more than one principal contractor is hired, it is critical that there is a clearly defined time when the principal contractor changes, as well as an effective transition protocol in place, to implement the change.
• Second, there may be room for a definition of "project" that is narrower than the colloquial or even commercial use of the term to be legitimately adopted for the purpose of WHS Regulations (although there is value in consistency, which should always be an objective). For example, there could be a number of projects within a larger program of works, allowing the appointment of multiple principal contractors for the program but only one for each "project" in accordance with the WHS Regulations.

Projects being undertaken side-by-side (or in proximity)

Where projects are being undertaken side by side (or in proximity) with different principal contractors as part of a program of works, it is critical that all of them comply with the WHS Act's requirement for each PCBU to consult, cooperate, and coordinate activities with the others as far as reasonably practicable. Consideration must be given, for example, to the management of common access and egress points to each project workplace.

Two or more construction projects and intends to appoint different principal contractors to each one

When a client commissions two or more construction projects and intends to appoint separate general contractors for each, it is critical that the workplaces associated with each construction project be defined as separate and distinct. At any given time, only one PCBU can manage or control a specific workplace.

Two construction projects take place right next to each other, either on completely separate projects or as part of a larger program of work. A bridge, for example, is one construction project, and approaching road works is another. Or the refurbishment of a structure as one construction project and the installation, maintenance, or repair of a significant piece of plant within the structure as another construction project.

Each principal contractor's management or control must be clearly defined in each construction project. This is best accomplished by utilising physical boundaries (such as a fence) or visible markers (e.g. signs). Where physical separation or visual demarcation of a boundary between the two construction projects is not possible or practical, both principal contractors must be able to demonstrate:

• how risks associated with workers or others crossing the boundary between the two construction projects are identified and managed
• how the duty to ensure that the workplace is secured against unauthorised access is met.

Each principal contractor must have a contract with the client and cannot be a subcontractor to another. To ensure that risks to health and safety are managed, each PCBU (the principal contractor, any subcontractors, and the client) must consult, coordinate, and cooperate with one another. This is a shared responsibility between the parties and must be completed both before and during the work.

Responsibilities of Principal Contractors

You must put up prominent signs with your name, emergency contact information, and the location of the site office as the major contractor. Before work begins, you must also create a work health and safety management strategy that includes the following:

The arrangements you have for consultation, cooperation, and coordination of activities with individuals who have work-related health and safety obligations at the site, the plans in place should a health and safety event occur, and site-specific health and safety regulations, the plans for the collection, assessment, monitoring, and review of SWMSs, as well as the plans for ensuring that everyone at the workplace is aware of those regulations.

If the plan is not reviewed, or updated, and workers are not informed of the contents of the plan and their right to check it prior to the start of work, penalties may be imposed. Keep a copy of the plan on hand for workers to review and easily accessible until the project is finished, or for at least two years if there is a reportable 'notifiable incident'.

Related reading: The Importance of ‘Notifiable Incidents’ under the Workers’ Compensation OHS Act

The?principal?contractor is responsible for:

• workplace management and control (including on-site work coordination)
• risk management associated with construction work
• ensuring that the workplace is secure from unauthorised access
• preparing and maintaining a workplace health and safety management plan (or a 'health and safety coordination plan' in Victoria), informing workers about the plan, reviewing and revising it as needed
• obtaining a copy of (or, if the principal contractor is the PCBU, preparing or procuring) a safe work method statement (SWMS) for all "high risk" construction work. Work involving a risk of a person falling more than 2 metres, demolition, removal, or disturbance of asbestos, working in confined spaces, and any movement of the powered mobile plant is considered high-risk (among others). The SWMS must be followed and reviewed as needed,
• installing signage identifying the primary contractor on the job site, and
• ensuring that each person performing construction work in connection with the project is aware of the content of the workplace work health and safety management plan, as well as the person's right to inspect the work health and safety management plan prior to the start of work.

In harmonised jurisdictions, these obligations arise as a result of the party's position as the principal contractor. In Victoria, it is the responsibility of the principal contractor as well as the person in charge of managing and controlling a workplace to ensure that it is safe and free of health hazards.

The harmonised jurisdictions impose additional prescriptive requirements for workplace health and safety, requiring the principal contractor to ensure that the workplace has adequate arrangements for:

• appropriate facilities, as well as ensuring that the facilities are well-maintained and easily accessible
• first-aid supplies;
• a contingency plan
• personal protective equipment;
• managing the risk of airborne contaminants; managing the risk of using and storing flammable to combustible substances;
• minimising the dangers of falling objects and falls
• material storage, movement, and disposal
• Plant storage and traffic management.

The main contractor will also be responsible for the following duties, which it may share with other duty holders at the same workplace:

• coordinating with building designers; addressing concerns unique to demolition activity (including getting current subterranean,
• prior to directing or approving the start of excavation activity and securing trenches, provide critical services information,
• guaranteeing that all workers engaged in construction activity have general construction induction training (sometimes known as a "green card").

Depending on the duty holder's position in relation to the task being performed, the details of each duty holder's obligations may vary. These obligations are non-delegable and cannot be waived by a party through a contract (though a contract may clarify the roles and expectations of the various duty holders). Failure to uphold the pertinent obligations carries consequences.

In simple terms:

"Employees" work in your business and are part of the business

"Contractors" run their own business and provide services to your business

Licensing

If you’re a contractor, you may require a licence or other qualifications to perform certain work. For example, if you want to do electrical work in Australia you must hold the correct licence.

Tax & Superannuation

Generally, contractors and subcontractors are not paid super by their clients. However, if an individual contractor provides personal labour or skills to a company, the contractor may be entitled to super on top of their fee, even if they quote an ABN. If the contractor does not provide an ABN, the principal is required to withhold 46.5% of any payments and report these to the ATO. A contractor who is not registered for GST should not charge you GST.

When is a contractor more like an employee than a contractor? If a contractor is hired on an ongoing basis by a business and is paid primarily for their labour, they may be considered an employee for super purposes. The work, however, must be done by the contractor himself and not delegated to a subcontractor. Similarly, if the contractor is a company and one of its employees does the work for the client, the client does not pay super.

Employers in Australia generally have to pay a proportion of their workers' wages into a superannuation (super) fund to help them save for retirement. If you’re a contractor you may still be entitled to super from your employer. If you’re a contractor paid wholly or principally for your labour, you’re considered an employee for super purposes. You’ll be entitled to super from your employer under the same rules as employees.

There is one exception to this rule. If your contractor is paid entirely or primarily for labour services, they have the same right to super-guaranteed contributions as employees. To avoid penalties, you should consider whether your contractor falls into this category.?

According to Fair Work Australia, when determining whether your contractor is paid entirely or primarily for their labour services, you must consider whether they are:

• paid entirely or primarily for their personal labour and skills;
• performing their services personally; and
• paid for hours worked rather than results.

The most common error is assuming that a contractor does not require superannuation. It's a simple mistake to make, but it can be costly if a company gets it wrong because the ATO makes it simple to?work out the difference.

Other mistakes to avoid are:

• Paying the contract's total value in super when a portion of it is not labour,
• Direct payment of the 10.5% super guaranteed to the contractor to comply with the provisions of the Super Guaranteed laws, the super payment must go to a super fund.
• Paying a contractor's super when they aren't doing the work themselves Long-term contractors frequently experience this, where they first performed the task individually but gradually changed the arrangement.

Medicare Levies

Medicare levy payments must be made at a rate of 2% of your contracting income. This levy is in addition to any income tax that may be due on taxable income. You may be eligible for a reduction or exemption from Medicare levies depending on your or your spouse's circumstances, making professional assistance worthwhile.

Medicare levies fund three types of coverage: hospitalisation, medical care, and pharmaceuticals. It is critical that you understand what Medicare does and does not cover. The website PrivateHealth.gov.au has a wealth of information to help you understand what your Medicare levies will cover. If you earn more than a certain amount and do not have private patient hospital coverage, you may be subject to the Medicare Levy Surcharge (MLS) in addition to the base Medicare levy.

Pay-as-you-go (PAYG) instalments

PAYG instalments help you or your business to meet your income tax obligations. PAYG instalments are regular payments you make (usually each quarter) towards your expected income tax obligation. PAYG instalments are generally paid by contractors who earn a certain amount of income. The ATO will write to tell you if you must pay PAYG instalments.

Goods and services tax (GST)

You'll be required to file regular BAS returns every two months and make GST payments to the ATO. Registering for GST requires you to charge your clients 10% more for your services and to pass this additional income directly to the ATO. If you have eligible business deductions, you can claim the GST portion of those expenses and use it to offset the GST you owe the ATO on your income. When claiming business expenses, you must also keep receipts for 7 years as records.

If you’re registered for GST, the services you provide will be subject to GST.?You are required to register for GST if:

• your business has a GST turnover of $75,000 or more
• your non-profit organisation has a GST turnover of $150,000 or more?
• you provide taxi travel (including ride-sourcing services like Uber, GoCatch or Ola) regardless of your GST turnover
• you want to claim fuel tax credits for your business

GST is a tax that is added to your income; it does not replace or eliminate the need for you to pay Income Tax on your earnings.

Are apprentices and trainees employees or contractors?

For tax and superannuation purposes, apprentices and trainees are considered employees. Employers must meet their obligations for pay-as-you-go withholding tax, superannuation, and fringe benefits tax.

Australian business number (ABN)

As a contractor, if you do not have an?ABN?before doing work, your hirer may legally withhold the top rate of tax, plus the Medicare levy, from your payment. Labour hire workers aren’t entitled to an ABN, so you need to check if you’re entitled before applying.

You must?register for an ABN?for certain activities, such as taxi driving or providing ride-sourcing services through the sharing economy. The sharing economy is an economic activity through a digital platform (such as a website or an app) where people share assets or services for a fee.

If you provide services or assets through a platform for a fee, you need to consider how income tax and goods and services tax (GST) applies to your earnings.

Define - Sole Trader | Partnerships | Trust

A sole trader does not have a corporate structure and does not collaborate with others. A sole trader is a person who does business under their name or a registered business trading name and has their own ABN (Australian Business Number).

Partnerships, like sole proprietorships, lack a corporate structure and are formed by two individuals who operate under both individual partnership names or a registered business trading name, as well as having their own ABN (Australian Business Number).

Any of Australia's states or territories do not cover a business that operates through a Trust and the Trustee is either an individual or a partnership. This type of policy only covers its employees and contractors who are classified as employees under the 'Contractor Provision'.

Check to see if the person doing the work for you fits all or most of the descriptions below.

On a continuous basis, the person works under your direction and control.

• Under your supervision, the person usually works standard or set hours.
• The individual cannot subcontract or delegate the contract work or pay someone else to do it.
• You must pay for the work based on the time worked, a price per item or activity, or a commission rather than the result achieved based on the quote provided.
• You provide all or most of the equipment, tools, and other assets needed to complete the contract work, or you give the sole trader an allowance or reimburse him.
• The sole trader or partnership does not operate independently of your company, but rather works within it and is considered a part of it.

If all or most of the aforementioned factors apply to the working agreement or contract, the WorkCover Authority in your state will most likely consider the sole trader or partnership to be your worker. However, none of these variables is conclusive. Your WorkCover Authority will also consider your relationship with the person performing the work.

The rights and responsibilities of a contractor, subcontractor, and independent contractor.

Contractors have different workplace rights and protections from employees. Whether you're a contractor or you hire contractors, it's important to understand the different rules.

Under the Fair Work Act 2009, independent contractors are protected from:

Adverse action?

Adverse action can include being sacked or fired (dismissed), being demoted and being overlooked for promotion.

Adverse action is an action that is illegal if taken for specific reasons. for example, a business cannot terminate a contract with an independent contractor because they make a complaint to a regulator about their workplace rights. A number of actions are defined as adverse actions under the FW Act.

A person's adverse action includes doing, threatening, or organising any of the following:

• an employer dismissing an employee, injuring them in their employment, altering their position to their detriment, or discriminating between them and other employees,
• an employer refusing to employ a prospective employee or discriminating against them in the terms and conditions the employer offers,
• a principal terminating a contract with an independent contractor, injuring them or altering their position to their detriment, refusing to use their services or to supply goods and services to them, or discriminating against them in the terms and conditions the principal offers to engage them on,
• an employee or independent contractor taking industrial action against their employer or principal,
• an industrial association, or an officer or member of an industrial association, organising or taking industrial action against a person, or taking action that is detrimental to an employee or independent contractor,
• an industrial association imposing a penalty of any kind on a member.

The FW Act prohibits a person from taking adverse action against another person because that person:

• has a workplace right,
• has or has not used a workplace right,
• proposes to, or proposes not to, use a workplace right,
• does or does not belong to a trade union,
• engages or does not engage in the industrial activity (as set out previously).

Adverse action does not include:

• action that is authorised by or under the FW Act or any other Commonwealth law,
• an employer standing down an employee who is engaged in protected industrial action,
• an employer standing down an employee who is employed under a contract of employment that provides for the employer to stand down the employee in the circumstances.

Coercion?

Coercion is defined as a person who must not organise or take, or threaten to organise or take, any action against another person with the intent to coerce the other person, or a third person, to engage in industrial activity. For example, a business cannot threaten to take action against an independent contractor to coerce them not to exercise their workplace rights

It is unlawful for a person to organise or take action (or threaten to) with the intent to coerce another person or third party to:

• use or not use a workplace right, or use it in a particular way
• take part in industrial activity
• employ or not employ a particular person
• engage or not engage a particular independent contractor
• allocate or not allocate certain duties or responsibilities to a particular employee or independent contractor
• give a particular employee or independent contractor certain duties and responsibilities.

See?section 343?of the?Fair Work Act 2009.

Misrepresentation?

A person must not purposefully make a false or misleading representation about another person's duty to engage in industrial activity or another person's duty to disclose whether they or another person, are or were members of an industrial association or had any involvement in industrial activity. An employer, for example, cannot claim the right to know whether an employee is a member of a union. Independent contractors can choose whether or not to join a union or employer group.

A person must not knowingly or recklessly make a false or misleading representation about:

• the workplace rights of another person
• the use, or the effect of the use, of a workplace right by another person
• another person's obligation to take part in industrial activity
• another person's obligation to tell anyone whether they or a
• the third person is or is not an officer or member of an industrial association; is or is not taking part in industrial activity.

Misrepresentation to engage as an independent contractor

A person (the employer) who employs, or has ever employed, an individual to perform specific work must not make a false statement in order to persuade or influence the individual to enter into a 'contract for services' under which the individual will perform the same, or substantially the same, work for the employer as an independent contractor. An employer cannot knowingly attempt to persuade an employee to perform the same work they did as an employee as an independent contractor by making a false statement.

For example, an employer may not tell an employee that they can perform their job as an independent contractor and pay less tax as long as they obtain an ABN in order to induce the employee to perform the same work as an independent contractor if the employer knows that statement is false.

See?section 345?of the?Fair Work Act 2009.

Undue influence or pressure

Undue influence or pressure is when an employer exerts significant or inappropriate pressure on an employee to modify or alter their conditions of employment. For example, an employer must not pressure an employee to agree to an individual flexibility arrangement.

These provisions do not require coercion, but there must be some conduct that amounts to the exercise of influence or pressure in order to force an employee to act in a certain way. The provisions establish a lower bar than coercion. The prohibition applies when an employer makes an agreement with an individual employee (rather than a group of employees) and the employer is expected to take care not to put significant and inappropriate pressure on the employee to make the agreement.

Undue behaviour is defined as "unwarranted; excessive; too great" or "not proper, fitting, or right; unjustified." The definition of 'influence' is "to move or impel to, or do, something." Harassment or oppression are examples of 'pressure.'

It is unlawful for an employer to force or try to force an employee to:

• make or not make an agreement or arrangement under the National Employment Standards (which commenced operation on 1 January 2010),
• make or not make an agreement or arrangement under a term of a modern award or enterprise agreement that is permitted to be included in the award or agreement,
• agree to or terminate an individual flexibility arrangement under an enterprise agreement or modern award,
• accept a guarantee of annual earnings,
• agree or not agree to a deduction from amounts payable to the employee in relation to the performance of work.

The undue influence or pressure or coercive behaviour can be unlawful even if it does not succeed in making the person take or not take the action.

See?section 344?of the?Fair Work Act 2009.

General protections provisions

When it comes to workplace rights, general protection laws protect the majority of people from harmful (adverse) action, coercion, undue influence or pressure, and misrepresentation. The Fair Work Act's laws apply to the majority of employees and businesses. The law protects you in various ways. The majority of people are eligible to apply. When someone applies under general protection laws, they begin a legal process.

In most common case is about adverse action. In this case, the person who applies must show they are eligible to apply and someone took adverse action against them for a prohibited reason. For example, an employee may be able to apply if their employer dismisses them (takes adverse action) and because they were away from work when sick (prohibited reason for dismissing someone).

General protection laws protect your rights at work. The laws apply to most employers as well as employees, potential employees, and independent contractors.

There are 2 types of general protection applications. The type of application depends on whether you have been dismissed:

• Protection dismissal
• General protections no dismissal

General protection dismissal applications are the most common. These make up 85% of the applications FWO receives. This is where you have been dismissed for a reason prohibited by law.

What are the prohibited reasons?

A person cannot take adverse action for an illegal reason (prohibited). This can include taking action against you because you exercised your workplace rights (such as taking leave), because of your age, gender, disability, or other discriminatory reason, or because you are unable to work due to illness or injury.

See?sections 340-358?of the?Fair Work Act 2009.

These laws forbid someone from taking harmful ('adverse') action for specific reasons. The law states that someone cannot take harmful ('adverse') action against you for an illegal reason. This page lists the most commonly prohibited reasons. The Fair Work Act specifies all of the prohibited reasons below:

Long periods of sick leave:

Employees who are fired because they are temporarily absent from work due to illness or injury may be able to reapply. If this happens to you, you may be able to apply for general protection dismissal. Learn more about long periods of sick leave on the website of the Fair Work Ombudsman.

Section 352 of the Fair Work Act 2009 and Regulation 3.01 of the Fair Work Regulations 2009

Discrimination

The law protects employees and potential employees from workplace discrimination. If your employer discriminates against you because of your characteristics, you may be able to apply under general protections (attributes). Unlawful workplace discrimination occurs when an employer takes adverse action against an employee or prospective employee because of one or more of the following characteristics of the person: race, colour, sex, sexual orientation, age, physical or mental disability, marital status, family or caregiver responsibilities, pregnancy, religion, political opinion, national extraction, or disability.

When adverse action is taken because of discrimination

Employees and potential employees are protected from workplace discrimination. Employers who take harmful ('adverse') action as a result of discrimination may be in violation of general protection laws.

An employer may break general protections laws if they:

• dismiss an employee?because of?their features or attributes
• don't hire someone?because of?their features or attributes
• treat a person differently from others?because of?their features or attributes
• offer an employee worse terms than other employees?because of?their features or attributes
• don't give a worker their legal entitlements?because of?their features or attributes
• change an employee’s job in a way that has a negative effect?because of?their features or attributes
• take or threaten to take adverse action to force an employee to do something?because of?their features or attributes.

Note: The word ‘because’ is important in a dispute or case about general protections. You may be able to ask us to resolve a dispute if you believe your employer or potential future employer has taken an adverse action and the reason is discrimination.

Fair Work Ombudsman

See?section 351?of the?Fair Work Act 2009

Workplace rights

A workplace right might be the right to ask about your rate of pay or to make a complaint or enquiry about your employment.

You may be able to apply under the general protections if adverse action has been taken against you:

• because you have a workplace right
• because you used a workplace right
• because you say you will use a workplace right
• to stop you from using a workplace right
• because another person says they will use a workplace right for your benefit.

See section 340?of the?Fair Work Act 2009.

Industrial activities

The law protects your right to participate (or not participate) in industrial activities. You can choose to join (or not join) an industrial association.

This includes unions and employer associations. If a person:

• takes adverse action because a person is (or is not) involved in industrial activities (see below)
• coerces another person to be involved in industrial activity
• makes misrepresentations about a person's: obligation to engage in industrial activity; obligation to disclose information about membership to an industrial association; obligation to disclose information about engaging in industrial activities
• induces their employees to become a member of an industrial association
• induces their employees to stop being a member of an industrial association.

Industrial activities include:

• being a member of an industrial association
• becoming involved in establishing a union or employer association
• organising or promoting lawful activities of a union or employer association
• encouraging participation in a lawful activity for a union or employer association
• complying with a legal request made by a union or employer association
• representing the views, claims or interests of a union or employer association
• paying a fee to a union or employer association
• seeking to be represented by a union or employer association.

See: sections 346-350?of the?Fair Work Act 2009.

Sham contracting

The majority of employees are protected from shame arrangements. An employer is not permitted to inform an employee that they have been hired as a contractor. An employer may not fire or threaten to fire an employee in order to hire them as an independent contractor to do the same or similar work. This illegal practice is where a person working as an employee is told they are an independent contractor when they are not, the Fair Work Act 2009 can penalise an employer up to $66,600.

See?sections 357-359?of the?Fair Work Act 2009 & 'Sham contracting arrangements'

Employees and "potential" employees

Most employees are protected by general protection laws. A person who has an employment contract with an employer is referred to as an employee. They are paid by their employer. The employee could be full-time or part-time, casual, or on a fixed-term contract.

The general protections laws cover people who are:

• current employees
• "potential" employees (such as job applicants).

You are?not?an employee if:

• you are an independent contractor or subcontractor
• you are not paid for the work you do (such as a volunteer or unpaid intern)
• you are a sole trader.

Employers and "potential" employers

The general protection laws apply to both current and prospective employers. A "potential" employer is typically someone who interviews applicants for job openings.

Employees of recruitment agencies and labour hire companies

Only the agency can dismiss you. You cannot start a claim for dismissal against the host. For applications about dismissal under general protections, you must give details of the agency that pays you and the company you do the work for.

If you work through an agency:

• your employer is the agency (the ‘principal’) and they pay you
• the company you do work for is your ‘host’.

Contractors

The general protection laws cover independent contractors who have a dispute with a company or person. Contractors and sub-contractors cannot start a claim for dismissal because you have a contract to provide services, not an employment contract.

Note: different businesses may use the term ‘contractor’ in different ways.

Fair Work Ombudsman

Businesses that must follow the laws

Constitutionally-covered businesses must follow the general protection laws. This includes:

• a constitutional corporation
• most proprietary limited (Pty Ltd) companies
• foreign corporations incorporated overseas
• trading or financial corporations formed within Australia
• a body corporate incorporated in a territory of Australia
• the Australian Government
• a Commonwealth authority, which means:
• a body corporate established for a public purpose by or under a Commonwealth law, or
• a body corporate incorporated under a Commonwealth, state or territory law where the Commonwealth has a controlling interest in that body
• a business or organisation conducted principally in a territory of Australia or a place acquired by the Commonwealth for public purposes.

Businesses that may not be covered

Your workplace may?not?be covered by the general protections if it is:

• a sole trader or partnership in Western Australia
• a state government department (except in Victoria)
• a non-corporate state public sector agency (except in Victoria)
• a local government body that is not a corporation
• a local government body not engaged in trading or financial activities.

Fair Work Ombudsman Commission Investigation

The FWO can investigate allegations of contraventions of the general protection provisions. Penalties in excess of $13,000 (for an individual) or $66,000 (for a company) can apply for contraventions of the general protection provisions. Penalty amounts are subject to change. You can check the current maximum penalties at www.fairwork.gov.au.

The Fair Work Commission (FWC) can also deal with alleged contraventions of the general protection provisions.

There are two main types of applications:

• disputes - if a person has not been dismissed, but alleges that there has been some other contravention of the general protections provisions, they may make an application to the FWC to deal with the dispute;
• dismissals - if a person believes they have been dismissed and alleges that their dismissal was in contravention of the general protections provisions, they should make an application to the FWC to deal with the dismissal in the first instance. A general protection dismissal application must be lodged within 21 days of the dismissal taking effect.

It is your responsibility to determine whether or not your contractors are classified as workers by WorkSafe. If they are, your total remuneration may be affected, which is one of the key factors influencing your premium and whether you need to register for WorkCover insurance. If your total annual salary exceeds $7,500, you must register for WorkCover insurance in the NSW, VIC, QLD and SA (threshold indexed each year). State in TAS, NT, WA and ACT must register for WorkCover if you pay any wages.

When you hire a contractor, you must first determine whether they are considered a "worker" by WorkSafe. If the person is classified as a worker, you effectively become their employer for WorkCover insurance purposes, and the money you pay them must be included in your total remuneration.

Employees and independent contractors have different rights and obligations. This is because they provide services to another person or business rather than working for that person or business. This means that distinguishing between the two is critical. When determining whether a person is an employee or an independent contractor, the court considers the entire relationship between the parties.

Contractor Protections and Rights

The Act protects Independent Contractors' workplace rights even if they own their own business. The general safeguards protect both the previously hired independent contractor and the person who hired them to provide services (the principal), as well as the contractor whom the principal plans to hire. Independent contractors and prospective contractors are protected from coercion, retaliation, and violations of free association when they exercise a workplace right or engage in industrial activities.

Under the Workplace Health and Safety Act of 2004, independent contractors have the right to a safe and healthy workplace (Vic). Depending on the terms of the contract and the engagement, independent contractors may be entitled to superannuation contributions and workers' compensation protections.

Contractors' workplace rights and responsibilities include any responsibilities imposed by workplace law. Contractors can file a complaint or enquiry, or initiate a process or proceedings, to seek compliance with workplace law.

The principal takes adverse action against a (proposed) independent contractor if the principal threatens or takes action in response to the exercise of a protected right (for example, a workplace right or the right to engage in industrial activity) by:

• refusal to hire the independent contractor or contract termination
• discriminating against the independent contractor in the terms or conditions under which the principal offers the independent contractor employment
• inflicting harm on the independent contractor due to contract terms and conditions
• changing the independent contractor's position to the independent contractor's disadvantage
• refusing to use or agree to use the services provided by the independent contractor
• refusing to supply goods or services to the independent contractor or agreeing to supply goods or services to the independent contractor.

However, keep in mind that the principal is protected from the independent contractor if the principal exercises a workplace law right and the independent contractor threatens or takes action by halting contract work or taking strike action against the principal.

Employers must ensure that workers' compensation insurance covers all employees for work-related injuries.

Contractors and subcontractors who are defined as workers under the Workers' Compensation and Injury Management Act 1981 may also be entitled to workers' compensation (the Act).

As an employer, you must understand the common factors that determine whether a person is an employee or an independent contractor such as how much control does the employee have over their work? The authority to delegate tasks to others, ability to work for other companies, whether the arrangement is ongoing or a one-time task, who is responsible for providing tools and equipment? Leave benefits and methods of payment.

Who Is Covered?

In Australia, workers' compensation schemes cover workers who meet the scheme's legislative definition of worker or deemed worker.

Who Is Not Covered?

Genuine Independent contractors, sole proprietors, partnerships, and trusts are generally not covered by workers' compensation schemes and must arrange their income protection insurance. They are typically employed under a contract for services and are considered to be running their own business and working under commercial contracts rather than employment contracts.

Existing workers' compensation systems make obtaining workers' compensation insurance impossible for sole proprietors, partnerships, trusts, or independent contractors. This is due to current worker definitions and the difficulties in covering the costs of these types of workers.

Sham contracting arrangements

When an employer disguises an employment relationship as an independent contracting arrangement, this is known as sham contracting. This is typically done to avoid paying employee benefits. If you believe you are involved in a sham contracting arrangement, the Fair Work Ombudsman can look into it.

An employer can engage in sham contracting knowingly or unknowingly. These kinds of arrangements are sometimes set up by employers who want to avoid paying employees' legal entitlements.

When a company (or an individual) tells a worker they are an independent contractor, the worker is actually an employee of the company. A sham contracting arrangement may exist if the business knew (or was reckless as to whether) the worker was an employee. Even if the worker is treated in some ways as an independent contractor, a sham contracting arrangement may exist (for example, the worker may be required to have an ABN and submit invoices like a genuine independent contractor would).

Engaging in sham contracting is prohibited under the?Fair Work Act 2009?and penalties may be applied in the event of contravention.?

Sham contracting is illegal. It’s illegal to:

• tell an employee they are an independent contractor
• say something false to convince an employee to do the same work for the employer but as an independent contractor
• dismiss or threaten to dismiss an employee if they don’t become an independent contractor, or
• dismiss or threaten to dismiss an employee in order to engage them as an independent contractor to do the same work.
• mislead an employee in order to persuade them to perform the same (or mostly the same) work as an independent contractor.

The courts have the authority to impose penalties for sham contracting. Per violation, the maximum penalty is $13,320 for individuals and $66,600 for corporations.

Below are some of the most important factors to take into account, take note that the list is not exhaustive.

• How much control does the employee have over their work?
• The authority to delegate tasks to others.
• The ability to work for other companies.
• Whether the arrangement is ongoing or a one-time task.
• Who is responsible for providing tools and equipment?
• Leave benefits.
• Methods of Payment.

Avoidance Arrangements

Liability for arrangements that are contrived to avoid workers’ compensation Workers’ compensation laws prohibit certain employers from requiring individuals to incorporate (set up their own company) as a condition of getting a contract for work. Employers cannot contract out of liability under the Act by making a worker sign an agreement that they are not entitled to claim workers’ compensation or seek to avoid liability through contractual. arrangements. The Act refers to such an agreement as an avoidance arrangement and hefty penalties apply for those engaging in an Avoidance scheme.

Is my worker an "Employee" or a "Contractor"?

Check if your contractor satisfies the 4 conditions below:

1. The sole trader, company, trust, or partnership is working on or on behalf of your company.
2. The same person will personally perform at least 80% of the total contract work.
3. You will pay the sole trader, company, trust, or partnership primarily for the supply of labour (rather than the supply of equipment or materials).
4. You must pay at least 80% of the total gross income earned by the sole trader, company, trust, or partnership from all sources for services of the same kind.

If all four of the above conditions are satisfied by your WorkCover Authority, the contractor is likely to be considered a worker unless it is satisfied that the contractor operates as an independent business; this also applies to a sole trader who would be classified as a genuine contractor. If one or more of the four conditions listed above do not apply, your contractor is most likely not a deemed worker for WorkCover insurance purposes.

Consider the following factors when determining whether a contractor is engaged in an independent business other than yours. There is no single factor that is decisive.

All of these indicators must be considered when determining whether you are an employee or an independent contractor. There is rarely a single deciding factor. For example, simply having an ABN or issuing invoices does not make you an independent contractor.

An individual may perform the same type of work as an employee of a company while remaining an independent contractor.

• Is the contractor's business under your control or subordination? For example, do you have authority over who the contractor hires or how the work is completed?
• Is the contractor's business dependent on yours for survival?
• Is it common for the contractor to enter into agreements with multiple hirers at the same time (or one after the other)?
• Is the contractor claiming to be available to work for others? (For example, does the contractor advertise – through tender or word of mouth – that they are available to perform contractor services; does the contractor have independent branding; and does the contractor describe itself as a part of your business?
• Is the contractor's service offering supported by financial or other systems?
• Is the contractor's usual practice to hire employees or subcontractors?
• Is it you or the contractor who handles customer accounts?
• What is the contractor's payment method?

In addition to reviewing the contractor's business, the following are important factors to consider when making your decision:

• The use of a business name by the contractor.
• The origins of the contractor business.
• The extent and type of advertising used by the contractor.
• The clientele that the contractor serves. The scope and nature of the contractor's plant and equipment used in the provision of services.
• The hiring of employees or subcontractors by the contractor.
• The contractor's use of the commercial property.
• The method of operation of the company (such as tendering for jobs)
• The contractor's entrepreneurial risk.
• The nature of the contracts entered into (for example, formal long-term contracts or informal rolled-over contracts), as well as whether work is performed on separate contracts concurrently.
• The nature of the contractor's business and the services that are offered.
• Whether the contractor quotes jobs competitively on an all-inclusive basis (all labour and materials), or whether the contractor simply charges an hourly rate and adds the cost of materials.

Australian Tax Office (ATO) Decision Tool

You must use the worker and contractor decision tool to properly determine the employment status of your contractual worker.

The Australian Taxation Office (ATO) decision tool serves as the foundation for each state and territory decision tool kit. It is recommended that you use the tool kit for each contractual worker three times because each time you will get a different result depending on how you answer those questions. So, be consistent in your responses to those questions.

The table below outlines six (6) of the factors that, when considered together, determine whether a worker is an employee or a contractor for Tax and Superannuation purposes.

An employee works for and contributes to your company. A contractor owns his or her own business. Six factors are discussed below to help determine whether a worker is a contractor or an employee for tax and superannuation purposes.

There are 6?key things to check to help you work out if you're a contractor or employee.

1. Ability to sub-contract or delegate: Who does the work?
2. Basis of payment: How does the person who pays you work out how much to pay you?
3. Equipment, tools and other assets: What do you need to do for your work?
4. Commercial risks: If you make a mistake, who pays to have it fixed?
5. Control over the work: Who tells you how to do the work?
6. Independence: Are you seen to be a part of the business or separate?

Payroll Tax Contractor Provisions

Payroll tax is a state tax levied on employers' wages. Wages are defined as payments to contractors in many state and territory payroll tax laws. To determine whether payments are subject to the payroll tax, employers should contact their state or territory revenue office.

The payroll tax contractor provisions are found in Division 7, Part 3 of the Payroll Tax Act of 2007. (the Act).

They are intended to tax payments made to contractors who primarily provide labour services and work solely or primarily for one principal during a financial year. Such arrangements are known as 'relevant contracts.'

A "relevant contract" is one in which one party pays another for services and which, among other things, does not fall under one of the contractor exemptions. Wages are paid under these contracts (excluding GST). The principal who hires the contractor is considered an employer who must pay payroll tax on those wages.

Payroll tax on employment agent or labour hire arrangements

The?contractor provisions are not applicable?where a contract worker is provided under an employment agency contract.

The employment agency provisions apply to a labour hire arrangement where a person (the employment agent) contracts with another (the client) for the provision of labour where there is no agreement between the service provider (that is, the contract worker) and the client.

If you work as an employment agency, you may be subject to payroll tax on the wages you pay employees for services rendered to your clients. Payroll tax may be due if you hire and pay an individual worker to provide services to a client and If remuneration is paid or payable by you for the worker's services, you are entitled to receive payment from the client for the period during which the worker supplies services to that client.

An employment agency contract exists if an employment agent obtains a worker to provide services to a client in return for a fee. Under this arrangement, the worker does not become an employee of the client. The worker can provide these services individually or through a corporation or trust.

Payroll tax is calculated on any amount paid to the contract worker from any source in relation to that contract and the value of any fringe benefits and superannuation contributions provided for the contract worker. Care should be taken in determining if the employment agency provisions apply to your organisation. These provisions apply regardless of whether the relationship between the contract worker and the employment agency is one of principal/contractor or employer/employee.

An employment agent arrangement usually involves the following:

• the worker contracting with the employment agent
• the employment agent contracting with the client.

Note: An employment agency is different from a recruitment agency arrangement. See the?public ruling about recruitment agencies (PTA029)?for more information. Aslo Determining whether a worker is an employee | Revenue NSW

Before you consider whether you are paying amounts under a relevant contract, look at whether the:

• person providing services is your?employee
• person's services are provided to you by an?employment agency.

If you are satisfied that neither of these applies, you can then look at whether a relevant contract exists.

For more details, please refer to the website for your state or territory:

NSW|?Victoria|?Queensland| Tasmania| South Australia| ACT| Northern Territory

Combine the ATO Six (6) Rules with these Golden Rules.

The factors listed in the table below with the ATO six golden rules will assist you in determining whether a worker is an employee or a contractor for tax and super purposes. This information aids in comprehending each factor that contributes to the decision-making process.

Contractor Provision - an exception

WorkSafe Victoria Contractor (80% Rule - Sole working director)

If your contractual worker is a sole working director who operates as an Incorporated Entity and works for you more than 80% of the time, their services and gross income are entirely dependent on you. The contractual worker is then referred to as a Deemed Worker and you need to cover this contractor. This rule was introduced to avoid "double dipping".

If, under a contractual arrangement between a contractor and a hirer, all of the following three conditions apply:

• the provision of materials or equipment is not the principal object of the arrangement
• at least 80% of the contractor’s gross contractual income is or is to be, a direct result of the services performed by the same individual. At least 80% of the contractor’s total time to complete the services is, or can be expected to be, taken up by the same individual; and
• at least 80% of the contractor’s overall services income is earned or expected to be earned from the hirer

and unless WorkSafe determines that the arrangement is part of the contractor’s independent trade or business:

• the individual is deemed to be a worker of the hirer for that period; and
• the total amount paid or payable to the contractor under the arrangement less any applicable statutory percentage or any part of that total amount not attributable to the provision of labour is deemed to be rateable remuneration for the purposes of the legislation.

WorkCover Queensland Contractors

In Queensland, any contractual worker who is a Deemed Contractor is not covered, regardless of whether the contractual worker is a sole trader, trust, partnership, or an Incorporated Entity. Also, note that working directors are not covered under the current scheme.

Important Notice:

It is not necessarily your contractual worker who is trading as an Incorporated Entity is automatically considered a contractor as this depends on the contractual work arrangement. Not necessarily, an ABN holder that is sole trader, partnership and trust is automatically considered a Deemed Worker. Depending on the contractual work arrangement, they can also be considered a Deemed Contractor.The fact that a person is self-employed or has an Australian Business Number does not absolve the person or entity who hired them of any liability for work-related injuries. The provisions of the Act apply regardless of any contrary contract (section 301). This means that any private arrangement entered into in relation to compensation for workplace injury is null and void if the contractor makes a claim and is considered a worker under the Act.

References & Externa Link: WorkSafe VIC | RTWSA | WorkCover QLD | icare NSW | WorkSafe NT | WorkSafe TAS | WorkSafe ACT | WorkCover WA |

Updated 24 August 2022

Disclaimer:

This document is not?intended?to be taken as advice regarding any individual situation?and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy.??My WorkCover Solutions Pty Ltd shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning legal matters are based solely on our experience as Workers' Compensation insurance consultants and are not to be relied upon as legal advice, for which you should consult your own professional advisors.?My WorkCover Solutions Pty Ltd does not accept liability for any loss or damage arising from reliance on the content of this blog, or from links on this website to any external website. Where applicable, liability is limited by a scheme approved under Professional Standards Legislation.