It allows you to negotiate and define the terms and conditions of the relationship up front. By taking the time to set out the exact nature of the arrangement the possibility of any future misunderstandings or disputes are minimised.
This document includes clauses to protect the principal’s business interests while allowing the principal to maintain a healthy ongoing relationship with the contractor.
The ATO actively scrutinises whether contractors are actually employees. Although there are many circumstances where it is lawful for a business to engage an independent contractor, the law seeks to ensure that employees are protected from being treated as independent contractors when they should be in fact be an employee.
Factors that point towards a person being an independent contractor are where an independent contractor:-
In contrast, employees perform their work under the direction and control of their employer, and generally on an ongoing basis with standard set work hours (with the exception of casuals).
RP Emery & Associates supply the following professionally drafted Contractors Agreements
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