Introduction

The purpose of these guidelines is to provide direction to staff responsible for the engagement of contractors providing labour services to the University. These guidelines do not cover issues associated with safety and health. Safety and health issues are covered in the University's "Contractor Safety and Health Policy".

The legal and administrative arrangements relating to the engagement of individuals supplying their services to the University can be confusing and easily misunderstood. In many instances, the law will regard an individual who is engaged as an independent contractor as an employee despite the contract, however described. Should this occur, the University may be liable for the obligations relating to pay and conditions under the award or certified agreement, unfair dismissal provisions, pay as you go (PAYG) and payroll tax, workers compensation and superannuation liabilities.

After 1 July 2000 the University will only pay on invoice and will only pay in full those contractors who have an Australian Business Number (ABN). Where a contractor does not provide an ABN, the University will be legally obliged to deduct tax from the payment at the highest marginal rate and remit this amount to the Australian Taxation Office.

By following these guidelines, staff engaging a third party to provide labour services to the University, will assist the University in meeting its obligations in terms of the relevant legislation, decisions and rulings as determined by the courts, Australian Taxation Office (ATO) and the State Revenue Department (SRD). It is important that staff utilise the appropriate form of contract to meet the particular circumstances.

There are three forms of contract relevant to this area:

1. contract of service between an employee and the University;
2. contract for service between a contractor and the University; and
3. contracts with labour hire firms.