It is crucial to appropriately classify your workers as either employees or contractors to ensure you afford your workers the rights they are entitled to.
An incorrect classification may subject you to an order from the Fair Work Commission or Federal Court. There are a number of factors to consider when determining what category your workers fall under, and some of these factors include: Here, you may have to pay fines, superannuation and other entitlements on top of what you may have already paid to your workers. If you are unsure whether your workers should be employees or contractors, a lawyer can provide you with definitive results and advise you on your workers’ entitlements. Whether you are engaging workers as employees or independent contractors, you should have an appropriate agreement in place. For example, you may require your contractor to have a specific licence or qualification.Īn employment agreement clearly sets out the relationship and rights between your business and your workers as your employees.įor example, you should consider whether you will engage the contractor on a project basis or ongoing basis and For example, such details should include timeframes, deliverables and how you will pay the contractor details of the services of the contractor.Some key factors that the agreement should include: you need to discuss rights, duties, promises and agreements with your workers orĪ contractor agreement outlines how you will engage a contractor and the key terms of your arrangement with them.Having written agreements in place legally protects you as an employer as it provides you with a safety net if: Agreements between you and your workers not only define your relationship with them, but shape how your workers fit within your business.
It is important to outline the key factors of the engagement within the employment agreement such as: Having a written agreement in place shows your commitment to your workers while also minimising the risk of a future dispute.
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