Contractor or employee?

Contractor or employee? You better get it right as the implications for doing so can be financial crippling.  And then there is the time and mental frustration of dealing with such disputes.

The critical thing is to get the classification right.

You then have to get the right documentation in place.

  • If they are an employee then you need to do a few things including determine the right award, give them a letter of offer and issue the National 10 Employment Standards.
  • All too many business owners fail to document a contractor relationship. Agreements are looked through by investigators to avoid shams and find the true relationship. Sadly though, some business owners lose the fight as they have don’t have a contractor’s agreement to prove their position – leaving the investigators to pretty much accept whatever the payee claims.

Does it cost to establish a contractor’s agreement? Yes (but it’s insignificant considering what it can save you)

Should you get one off the web? No (how many times do do it yourself lawyers use say a USA agreement or be clueless about the differing considerations used by the ATO, State Revenue Office and WorkCover).

Will the process reduce the possibility of any claim as both parties are fully aware of the relationship? Absolutely.

We would welcome the opportunity to discuss your situation.

At MRS, we will spend today planning for your success.