12:00 am, Wednesday 19 September, 2007

Source: The Coast Daily

Confusion about the implications and requirements of the Independent Contractors Act, introduced in March this year, still abounds.

But it won’t be an excuse for owners of building and construction companies who potentially face massive fines for non-compliance.

Speaking last Wednesday at a construction industry expo held at Lake Kawana Community Centre, Master Builders Association workplace relations advisor Craig Dearling acknowledged while the act was “very complex for the average person”, by answering three questions it was usually possible to determine whether someone was defined as an employee or a contractor.

Those questions were: 1. Do you pay the person on an hourly rate, or square metre rate? 2. Are they responsible for their own defects? And, 3. Who controls the manner in which the work is performed?

“If the answer to question one is yes, then in 99% of cases the person will be regarded as an employee,” Mr Dearling said.

“But if someone isn’t sure, they should contact their local Master Builders Association office.”

Mr Dearling said if a person was wrongly categorised, a business owner could be liable for WorkCover, tax and superannuation payments.

“It could end up costing hundreds of thousands in liabilities … and WorkCover can fine people 100% of what they owe, going back seven years,” he said.

The presentation was held as part of a mini building and construction industry expo organised by the Area Consultative Committee.

ACC chief executive officer Robert Dunbar said once the idea of a presentation on the Independent Contractors Act was raised, a number of people in the industry suggested holding it in conjunction with a mini expo.

“In recent years the MBA and HIA have both had major expos on the Coast. But neither are doing that this year so we thought we’d do something along those lines,” he said.

“Certainly the people we’ve been speaking to about issues like the Independent Contractors Act and workplace health and safety, have expressed confusion about their obligations.

“So we thought we’d provide a forum for information on those subjects to be provided.”

OHS NEWS TIP - Contractor Permit To Work Form

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