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All employees have the right to receive certain entitlements during the course of their employment, such as wages, leave and superannuation.
As contractor relationships are common in the industry, it's often difficult to determine whether a worker is legally an employee or contractor. Just because a worker has an ABN, doesn't necessarily classify them as a contractor. Subcontracting arrangements are usually entered into with an entity such as a Pty Ltd business, a trust or a partnership. A good indication of a true subcontracting arrangement is when the entity can delegate the work to a person to perform. The employment relationship must be stated in your written contract.
It’s illegal to misrepresent an employment relationship, under the Independent Contractors Act 2006. If you classify a worker as a contractor, but legally they’re an employee, you may be liable for unpaid benefits for the entire period they worked for you.
Master Builders also offers advice in the following areas:
National Employment Standards
- Maximum weekly hours (38 hours, plus reasonable overtime)
- Right for parents to request flexible work arrangements
- Parental leave (12 months unpaid per parent)
- Annual leave
- Personal/carer’s and compassionate leave (paid and unpaid)
- Community service (unpaid) and jury service (paid)
- Long service leave
- Public holidays
- Notice of termination and redundancy pay
- Receive a Fair Work Information Statement.
The standards can be negotiated but mustn't be reduced by any Awards, enterprise agreements or employment contracts that result in less favourable conditions for an employee.
Fair Work Information Statement
As an employer, you should also be aware of your obligation to have compulsory workers' compensation insurance that covers injured workers for loss of capacity and income and medical expenses caused by a work-related injury or illness.
Need more information?
If you haven’t found the answer to your questions on our website, give us a call or email us.