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Making Sense of the Contractor vs. Employee Relationship
In a recent decision of the Federal Court (On Call Interpreters and Translators Agency Pty Ltd v Commissioner of Taxation (No 3) [2011] FCA 366 (13 April 2011)), Justice Bromberg has tried to simplify and clarify the test for whether a person is an independent contractor or an employee. He did so after observing that workers and those who employ workers require more clarity from the law, especially when legislation demands that there be no misrepresentation of the nature of the relationship. After detailed consideration of the relevant authorities and the “totality test”, Justice Bromberg stated: “Simply, expressed, the question of whether a person is an independent contractor in relation to the performance of particular work, may be posed and answered as follows: Viewed as a “practical matter”: Is the person performing the work an entrepreneur who owns and operates a business; and, In pe...
12 May 2011Paid Parental Leave – Employer Obligations from 1 July 2011
The Paid Parental Leave scheme is governed by the Paid Parental Leave Act 2010 (Cth). The Act creates a number of obligations on employers and from 1 July 2011, employers must comply with the Act or risk civil penalties of up to $33,000 per breach. We outline some key questions and answers in relation to the scheme below. Who is Eligible for Paid Parental Leave? Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible. A person must have worked at least 330 hours, (just over one day a week) for 10 of the 13 months before the baby is born or adopted to be eligible. A person must also satisfy the income test, be an Australian resident, be the child’s primary carer, not have returned to work and not be entitled to the baby bonus to be eligible. Eligible working parents may get up to 18 weeks government funded pay at the National Minimum Wage, currently $569.90 a week before tax. An emplo...
12 May 2011