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New protections in Independent Contractors Bill

The Australian Government today announced the details of its new Independent Contractors Bill, scheduled to be introduced to the Parliament later this month.

The Bill contains significant new protections for Australia’s estimated 1.9 million independent contractors.

The Government is protecting the right of these contractors to be truly independent. That is, to prevent them from being roped into state laws which effectively force them to be ‘employees’, not ‘independent contractors’.

For many, being an independent contractor is the preferred way of doing business in a modern Australia and this choice should be protected.

Protections from ‘sham’ contracting

Significantly, the Bill also protects genuine employees from "sham" contracting arrangements, sometimes used by unscrupulous employers to avoid payment of legitimate employee entitlements. The Office of Workplace Services will have jurisdiction to investigate and enforce penalties.

Protections for owner-drivers in NSW and Victoria

Notably, protections for owner-drivers in New South Wales and Victoria, the only two States with such legislation, will be maintained by the Bill.

A review will be undertaken with a view to rationalising and achieving nation wide consistency of these types of laws. This will involve a public consultation process with a discussion paper from my Department and will begin in 2007.

The Government recognises that owner-drivers, like outworkers, have historically been recognised as having particular vulnerabilities and requiring special protections.

Protection of Textile, Clothing and Footwear outworkers

The Bill will maintain the status of Textile, Clothing and Footwear (TCF) contracted outworkers as employees under state legislation. This is consistent with the Government’s approach under the WorkChoices Act.

The Government recognises that outworkers need additional protection and this Bill provides that.

The Australian Fair Pay and Condition Standard will apply to contracted TCF outworkers in States and Territories where they are not covered by a law providing for some form of remuneration guarantee.

Three year Transitional Period

For independent contractors who have previously been "deemed" employees, there will be a three year transitional period to give businesses and workers time to adjust to the new legislation.

Regulation of Unfair Contracts

The Bill also provides a more balanced approach to the regulation of unfair contracts.

Provisions in the Bill will replace the existing federal unfair contracts legislation (currently in the Workplace Relations Act) and make it more accessible by providing that remedies may be sought in the Federal Magistrates Court.

This approach will retain access to a fair and reasonable federal remedy for genuine cases where unfair or harsh conditions have been imposed in a contract.

This national approach to unfair contracts will be achieved by overriding State unfair contracts legislation using the corporations power.

Existing protections under WorkChoices

The provisions of the Bill are in addition to changes already introduced in the WorkChoices legislation which prohibits the inclusion of clauses in awards that restrict or impose conditions on the terms of engagement of independent contractors or labour hire workers. The Workplace Relations Regulations prohibit inclusion of such clauses in workplace agreements.

The Bill is further evidence of the Government’s determination to deliver on it’s 2004 election commitment to prevent workplace relations systems from being used to undermine the status of independent contractors.

For further information contact: Brad Burke 0417 749 711

PROTECTING AUSSIE JOBS

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