Cleaning Up the Contract for Services

By Rohan Price

Legislative intervention is needed to curb the practice of converting "employees" into "contractors".

The case of Damevski v Endoxos Pty Ltd (AIRC, Grainger C, 9 May 2002) is discussed.

A staff meeting that Mr Damevski did not attend was told that restructuring was needed because of "horrendous increases in insurances". The result was to be the employees ending their employment relationship and becoming independent contractors. Damevski accepted a written offer on this basis in August and in February of the following year was informed that he was to be taken off the job. This was after he had drawn on his outstanding entitlements from his time as an employee. After being informed of losing his job as a contractor he filed for unfair dismissal. Cmr Grainger found that he had become a contractor and thus didn't have access to unfair dismissal laws.

Price discusses this and previous cases and the need for action to prevent these sorts of actions by companies to avoid entitlements and responsibilities.

(CCH Industrial Law News; issue 10, October 2002)