Prior to engaging a Contractor, it is essential to obtain the necessary information to determine if it is appropriate to engage them as a Contractor.
Note: all teaching and related roles, including marking, must be paid via a HR Employment Contract, this includes but is not limited to teaching undergraduate and post graduate courses, short courses and certificate courses.
The following information describes the new process for Contractor Management.
- Who is a Contractor?
For the purposes of this Contractor Management process, a Contractor is anyone engaged by the University in an activity which involves a labour component performed in Australia, or performed by Australian residents overseas and will invoice for work done for payment via Accounts Payable.
- Includes: Consultants, Entertainers
- Excludes: Labour hire agencies and contracts for materials only.
- Excludes: Larger organisations with multiple employees who would cover the statutory obligations for those employees
- Why introduce Contractor Management?
The University has legal obligations in relation to:
- Sham Contracting - Contractor vs Employee
- Payroll Tax (PRT)
- Workers Compensation
- What do I need to do?
Information about the Contractor must be obtained by the local area PRIOR to engagement. A flowchart has been development to assist you in the process.
The following must be completed:
- Contractor Questionnaire - completed by the Contractor
- Contractor Assessment Tool - for individuals / sole traders to be completed by the person engaging the Contractor
Conflict of Interest - where there is an actual, potential or perceived conflict of interest, a Disclosure of a Conflict of Interest Form must be completed. Refer to the Conflict of Interest webpage for further information.
Decision: Contractor vs Employee
It may be clear from the responses on the forms that an employee relationship exists, and that a HR Employment Contract needs to be set up.
If not clear, forward copies of the forms and a brief description of the work to be done to firstname.lastname@example.org. The forms will be reviewed, and external advice sought if needed.
If PRT, Superannuation or Workers Compensation applies, you will be advised that a HR Employment Contract must be set up or it may be more appropriate to engage via a labour hire agency.
If the arrangement is found to be a genuine contracting arrangement with no PRT, Superannuation or Workers Compensation applicable, the local area would be advised to proceed to a Consultancy Services Agreement.