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December 1, 2010 at 5:29 am #970947Utterly AquariumsMember
- Total posts: 13
Hi, I am in a position now where I have a fair amount of work and I would like to get someone in to take on part of the job. I probably only have a enough work for about 6 hours per week at the moment but that can change by 2-3 hours each way weekly.
I wanted to ask what is the best way to get someone, ideally i would like to pay someone as a contractor as I wouldn’t have to worry about Super and contracts etc (am I right in thinking that??)
I am only at the initial stages of thinking about it so any advice would be most welcome!
CheersDecember 2, 2010 at 10:49 pm #1046935Avatar ConsultingMember
- Total posts: 151
Employing casuals versus contractors
Firstly, as soon as you employ a single employee you become bound by Industrial Relations and legal obligations of employment pay and conditions. Please check your states employment awards/ conditions.
Using the services of a contractor, does actually mean that you need a contract, without a written contract you put your business [and personal assets at risk if a sole trader etc] if a situation develops.
To use a contractor you need to ensure that they are a registered business and invoice you just like a normal business. In fact, they will be operating as a business and not an employee.
The legal side of things with contractors is that the employer [you] have to prove they are not an employee or you will be automatically forced to treat them as an employee going back to when they started.
Things you cannot do if they are a contractor;
- Tell them when to start or finish work
- You cannot make them wear your business uniforms
- You cannot issue payslips or sick days
- They are allowed to get someone else to complete their work [you have no say in this]
- You cannot ‘fire’ them
Someone able and wanting to contract for only 6 hours a week will charge at least $35 per hour which is more than any employee is going to cost you.December 16, 2010 at 7:09 am #1046936beancounterMember
- Total posts: 159
The ATO has guidelines as to the definition of an employee or a contractor – and this also affects the Super requirements etc. – speak to your accountantDecember 18, 2010 at 2:45 am #1046937Avatar ConsultingMember
- Total posts: 151
Laws and employee conditions
Actually these laws and employee standards of employment are found at the government department ‘Fair Work’ and will provide all the details required when considering employees vs contractors.
They will also advise you of the relevant industry awards when hiring people, something the ATO is not setup to do.
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