The Independent Contractors Act 2006 (IC Act) protects the status of independent contractors by freeing them from the constraints of industrial and employment law. This allows genuine independent contractors to operate within a commercial framework, and prevents them from being captured by state laws that deem them to be employees.
The IC Act also provides protection against sham contracting and unfair contracts. Sham contracting arrangements, where an employer attempts to misrepresent an employment relationship as an independent contracting relationship, could attract fines of up to $6,600 for an individual and $33,000 for a body corporate. In addition, the legislation also provides for the Federal Court or the Federal Magistrates Court to review services contracts and to strike them out, or re-write them, if they are found to be harsh or unfair.
The Building and Construction Industry Improvement Act 2005 has been amended to include the IC Act as a designated building law. This gives the Office of the Australian Building and Construction Commissioner (ABCC) responsibility for promoting compliance with independent contractor laws, and the power to investigate and institute proceedings for suspected contraventions in the building and construction industry.
Fact sheets are available to assist industry participants in understanding their rights and responsibilities and the role of the ABCC.