Transitional arrangements applying to certain service agreements under the Independent Contractors Act 2006 (IC Act) that were due to expire on 28 February 2010 have been extended by 18 months.
The IC Act came into effect on 1 March 2007 with the aim of protecting the status of independent contractors. The IC Act excludes state and territory laws that require independent contractors to be treated as employees or provided employment-like entitlements.
At the time the IC Act commenced, parties with existing service contracts were subject to a transitional period during which the old state and territory laws could continue to apply. This transitional period was originally to run for three years.
The Independent Contractors Amendment Regulations 2009, which came into effect on 28 November 2009, extended the transitional period, which will now end on 1 September 2011.
By extending the transition period, those who are affected by the legislation have more time to arrange their business affairs and become familiar with the new requirements, ensuring compliance with the IC Act before relevant state and territory laws cease to apply. Parties with existing contracts can still opt-in to the new system prior to the end of the transitional period.
The ABCC advises those affected by the implementation of the IC Act to seek independent legal advice relevant to their particular circumstances.
Further information:
See Legislation section of the ABCC website
- Independent Contractors Act 2006
- Independent Contractors Amendment Regulations 2009