Independent Contractors Act

The Independent Contractors Bill 2006 and the Workplace Relations Amendment (Independent Contractors) Bill 2006 were tabled in Parliament on 22 June, 2006.

The principal Bill legislates for independent contractors to be regulated under commercial laws and institutions rather than being subject to any form of regulation under employment law. The objects of the Act are to protect the freedom of independent contractors to enter into services contracts, to recognise independent contracting as a legitimate form of work arrangement that is primarily commercial, and to prevent interference with the terms of genuine independent contracting arrangements. The secondary Bill amends the Workplace Relations Act and legislates for penalties for sham arrangements. 

These changes are likely to result in an increase in the number of individuals either being forced or choosing to operate as independent contractors.

APESMA has been assisting professionals with managing the transition from employee to independent contractor since 1999, and has in place a special interest group and a comprehensive range of services to assist contractors and to ensure their interests are protected if and when they decide to make the change. For further information, visit our Contracting for the first time page (members only).

• Legislation – Independent Contractors Act
• ACTU flags possible changes to the Independent Contractors Act
• APESMA Submissions to Inquiries
• Case law update/judgments
• Media
• Lobbying
• Fact sheet & briefing note
• Commentary

Legislation – Independent Contractors Act

	Independent Contractors Act 2006
	Fair Work Act 2009 (1.44MB, 650 pages)

ACTU flags possible changes to the Independent Contractors Act

The need for second wave of IR reforms including changes to independent contractor legislation was on the agenda at the June 2009 ACTU Congress. ACTU Secretary Jeff Lawrence says the ACTU sees independent contractor legislation as "a major unfinished aspect of our business with the Government". "We have agreement ... that there will be a process, chaired by the Deputy Prime Minister, to negotiate a position that will go to changes to the Independent Contractors Act," he said.

the ACTU policy on independent contractors calls for:

• Amendments to the Independent Contractors Act to ensure that all workers have decent working arrangements and access to low cost remedies against unfairness;
• Amendments to the Trade Practices Act to ensure contractors can be represented by their union in collective bargaining; and
• Amendments to the superannuation guarantee and workers' compensation legislation to extend these entitlements to excluded contractors, with unions to also seek to enforce the right of members engaged under contracts for labour to superannuation guarantee contributions.

The Federal Government has already committed to amending the Independent Contractors Act to seek to eliminate sham contracting, and ACTU President Burrow said she expected this would happen "sooner rather than later".

APESMA Submissions to Inquiries

	Submission on Andrews Proposals Departmental Discussion Paper on Proposals for Legislative Reforms in Independent Contracting  (430KB, 40 pages)
	APESMA Submission to Inquiry into Contracting (2005)   (143KB, 22 pages)
	Proposed Independent Contractors Bill 2006 and the Workplace Relations Amendment (Independent Contractors) Bill 2006   (142KB, 10 pages)
	Appearance before the Senate Workplace Relations Committee Inquiry into the Independent Contractors Bill (650KB, 106 pages)

Case law update/judgments

	Fair Work Ombudsman's first sham contracting prosecution – July 2009
	Truck drivers’ contract found unfair, in first Independent Contractors Act ruling
		Revised Riteway orders vary contract for unfairness, May 2009
	Corporate independent contractors can make unfair contract claim
	Sham contractor arrangements highlighted by Acting Chief Justice

Media

	New laws threaten pay rights of workers – 23 June 2006 Published in the Sydney Morning Herald
	APESMA Media release –22 June 2006  (71KB, 1 page)
	Minister Andrews media release – 20 June 2006  (131KB, 2 pages)
	Unions say contractor Bill bad news – 2 May 2006 Published in Australian IT
	Andrews media releases » Action To Protect Independent Contractors – 30 March 2006 (21KB, 1 page) » New protections in Independent Contractors Bill – 3 May 2006

Lobbying

2006 Letter to Treasurer on Independent Contractors Act and PSI – 26 May 2006 (112KB, 2 pages)

Fact sheet & briefing note

	Fact Sheet  (111KB, 4 pages)
	Briefing Note  (88KB, 4 pages)

Commentary

	Where’s the protection?  (61KB, 4 pages)
	What does it really mean?  (67KB, 2 pages)
	Workforce – IC Bill - penalties; definitions; states and unions respond – 22 June 2006  (112KB, 4 pages)
	Workforce – Andrews tables two independent contractors bills and here they are – 22 June 2006  (105KB, 3 pages)

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