THE FEDERAL Government recently released a discussion paper on independent contractors ahead of legislation which would make it easier for companies to use their services and free up recruitment firms from a range of current restrictions
THE FEDERAL Government recently released a discussion paper on independent contractors ahead of legislation which would make it easier for companies to use their services and free up recruitment firms from a range of current restrictions.
The discussion paper proposes that legislation prevent federal awards and agreements from containing clauses which restrict the use of independent contractors or labour hire workers, or which seek to put conditions on their engagement (for example, prescribing they have the same conditions as employees).
It would also address State and Territory legislation which deems independent contractors to be employees for the purpose of workplace relations regulation.
The Howard Government’s 2004 election policies included creating a new Independent Contractors Act to protect the status of independent contractors,”said Minister for Employment and Workplace Relations, Kevin Andrews.
“Independent contracting is an increasingly important form of working arrangement, with contractors working in fields as diverse as housing construction, transport and information technology.”
The discussion paper also proposes that legislation protect independent contracting arrangements (including ‘Odco’ arrangements) as commercial arrangements, not employment arrangements, and recommends introducing a civil penalty regime to deter employers from establishing sham independent contractor arrangements.
The National Institute of Economic and Industry Research recently found that labour hire and contracting out of permanent jobs places $14.38 billion of taxpayer money at risk in tax avoidance and evasion every year.
The research, carried out for the Australian Manufacturing Workers Union (AMWU), found that the risk to the income tax base in tax avoidance and tax evasion is $14.38 billion or $13,897 per non-employee in the economy.
The AMWU called on the Federal Government to reduce tax evasion by tightening legal definitions to outlaw sham contracts, limit labour hire and contracting arrangements to cases where there is a short term labour need only or performance of a specialised task and licence fees to fund a retirement fund to protect workers entitlements and a training scheme to combat massive skills shortages.
