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Independent trade contracting guide checklist
The following information is a guide outlining steps that can be taken to help ensure a worker is a subcontractor and not an employee.
Thursday, 15th April 2021
- Ensure the trade contractor is a Pty Ltd company, or partnership and/or registered business
- Ensure the trade contractor possesses an Australian Business Number (ABN) and, if necessary, GST registration
- Ensure the trade contractor enters into written results-based contract and invoices the principal in accordance with the contract
- Ensure the trade contractor has autonomy on job and is able to set their start and finish times (within contract guidelines)
- Ensure the trade contractor provides his/her own tools and equipment (they should not be relying upon someone else to provide necessary equipment)
- Provide the authority for the trade contractor to employ/engage suitable competent personnel, especially if they are unable to undertake the contract themselves
- Ensure the trade contractor is on contract rates – that is works for a fixed fee to achieve a fixed result (hourly rates or instances of payments not being linked to fixed results should be avoided)
- Ensure that the trade contractor provides their own workers compensation (where applicable), public liability and sickness and accident insurances
- Ensure that the contractor maintains a high level of discretion and flexibility as to how the contracted work is performed
- Ensure the trade contractor bears the risk for defective works
- Encourage the trade contractor to advertise to the general public at large
- Suggest that the trade contractor join an industry association to demonstrate their professional standing as a business to the community at large.
Note, the above is a guide only and HIA recommends that members investigate their liability under all Acts for those contractors who are deemed employees or workers.
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