Agreement clauses for contractors

Clause wording 20.1 The employer recognises that in certain circumstances the use of contractors and labour hire may affect the job security of employees covered by this Agreement. 20.2 For the purpose of this Clause:- Contractor means a person, company or business and includes labour hire companies and sub-contractors; and Work means work covered by the Agreement which might ordinarily be performed by current or future employees of the employer under this Agreement. 20.3 Where the employer makes a definite decision to engage Contractors to perform Work the employer must first consult in good faith with potentially affected employees and, in accordance with Clause 10- Consultation. 20.4 The employer agrees to consult with potentially affected employees as soon as practicable and not less than fourteen (14) days' before the commencement of the Work by the Contractors. If for any reason this does not occur, or if the employer has less than fourteen (14) days' notice of the need to commence the work, consultation will occur as soon as practicable- and in any case not more than fourteen (14) days after the Contractors commence work. 20.5 Without limiting the employer's obligation under Clause 10.5, the employer must provide the employees the following information in writing:- 20.5.1 the name of the proposed Contractor(s); 20.5.2 the type of work proposed to be given to the Contractors(s); 20.5.3 the number of persons and qualifications of the persons the proposed Contractor(s) may engage to perform the work; 20.5.4 the likely commencement date of the proposed Contractor(s); 20.5.5 the likely duration of this engagement; and 20.5.6 expected effects, if any, of the engagement of the proposed Contractor(s) on employees. 20.6 All subcontract firms would be engaged according to each of the following terms: (a) The subcontract firm will have its own safe work method statements and OHS plans. (b) The subcontract firm will have all appropriate licences and will hold current public liability and worker's compensation insurances. (c) Builders will be notified that the subcontract firm has been engaged and all Employees of the subcontract firm will be inducted under their company name. (d) All employees employed by the subcontract firm will hold all appropriate registrations and or licences to carry out work they are performing. (e) All employees of the subcontract firm will obey all site requirements. 20.7 In the event of a dispute about whether consultation has occurred under this clause, the matter will be dealt with in accordance with clause 14. (Dispute Resolution Procedure). 20.8 The employer will not contravene the sham contracting provisions in Part 3-1, Division 6 of the FW Act. What is the difference between an employee and a sub - contractor I independent contractor? 20.9 The following information is provided as a tool to all persons I organisations covered by the Agreement. 20.10 The information provided in Clause 20.13 and 20.14 was correct at the time that the Agreement was approved by the FWC. 20.11 There are a number of factors that assist in determining the difference between an employee an independent contractor. The following indicators may assist in determining the difference between an employee an independent contractor:- Indicator Employee Independent contractor Degree of control over Performs work, under Has a high level of control in how work is performed the direction of their how the work is done employer, on an ongoing basis Hours of work Generally works standard Generally decides what I set hours hours to work to complete the specific task Risk Bears no financial risk Bears the risk for making a (this is the responsibility profit I loss on each job I of the employer) task. Generally bears responsibility for their own work. Generally will have their own insurance policy I ies Superannuation Employer's responsibility Generally pays their own to pay superannuation. Note:- There are some situations in which an independent contractor is entitled to be paid superannuation contributions. Tools and equipment Tools and equipment are generally provided by the employer, or a tool allowance is provided Uses their own tools and equipment Tax Has income tax deducted by their employer Pays their own tax and GST to the ATO Method of payment Paid regularly- weekly Has obtained an ABN and submits an invoice for work completed or is paid at the end of the specific task Leave Entitled to receive paid leave (annual leave; personal I carers leave; etc) Does not receive paid leave 20.14 In addition, the ATO has put together an E mployee I Contractor Decision Tool. This can be accessed through the ATO Website:- https://www.ato.gov.au/Cal culators-and-tools/Employee-or-contractorI