Independent Contractors and Federal Industrial Relations Reforms

By Joe Catanzariti

Services contracts may be beyond the reach of state industrial tribunals and a range of state laws.

The Independent Contractors legislation will:

• apply to a contract with a company that relate to an independent contractor performing work (corporate services contracts)

• free corporate services contracts from predominantly state laws that treat a contractor as an employee or allow the contract to be vetted by an industrial tribunal, although outworkers and transport drivers will be able to access state laws

• allow a party to some but not all corporate services contracts to go to court to challenge the contract as unfair or harsh

Overall a shift to governance by commercial law rather than industrial law

Catanzariti sums up the changes, the penalties for sham arrangements and the implications for contracting firms when engaging contracts for corporate services

(LexisNexis Butterworths Employment Law Bulletin. vol. 12 nos. 6 and 7)