Overview
Why is the Government introducing these laws?
The new legislation reflects the Australian Government’s view that independent contractors should have flexibility in how they run their business. The new laws protecting the rights of independent contractors follow on from a 2004 federal election commitment.
The development of the new laws was informed by a lengthy public consultation process, involving:
- a House of Representatives Committee inquiry into independent contracting and labour hire arrangements
- the release of a departmental discussion paper, and
- a Senate Committee inquiry into the provisions of the Bills.
Summary of key changes
The independent contractors laws:
- stop state laws from requiring independent contractors to be treated as if they were employees
- establish a three year ‘transitional’ period during which existing state laws may still apply to existing contracts
- keep state laws protecting textile, clothing and footwear outworkers
- do not affect New South Wales and Victorian laws specifically dealing with owner-drivers
- replace New South Wales and Queensland unfair contracts laws with a new federal unfair contracts jurisdiction
- make it illegal for an employer to disguise an employment relationship as an independent contracting arrangement, and
- make it illegal for employers to threaten or mislead employees to get them to change their status to independent contractors.