Contractors in Australia
Working with global contractors can help your company grow. Before you begin searching for these professionals, you should understand the legal framework and how to approach this worker relationship.
읽는 시간: 3분
Working with global contractors can help your company grow. Before you begin searching for these professionals, you should understand the legal framework and how to approach this worker relationship.
Hiring independent contractors in Australia
Before you enter an agreement with an independent contractor in Australia, you must understand the laws surrounding contractors.
Full-time employees vs. contractors
The distinction between full-time employees and independent contractors is essential to ensure compliance. In Australia, full-time employees are hired by employers to provide services through personal labor. In return, the employer provides a regular salary or wage.
Independent contractors conduct business by providing services. The country recognizes that contractors do not have the duty of loyalty to those who hire them like full-time employees would.
Independent contractors also operate according to their own schedules, provide their own equipment, and work on specific projects rather than on an ongoing basis.
Penalties for misclassification
Classifying someone as a contractor when they’re not one can bring about a range of penalties. Misclassification may lead to:
- Paying all withholding tax for the period of employment
- Back pay of superannuation contributions with interest
- Large fines, especially if the company is found to be intentionally misleading
How to hire independent contractors in Australia
The hiring process for independent contractors will look different from full-time employees. Following these three steps can help you build successful contractor relationships.
1. Carefully conduct interviews
During the interview process, it’s essential to focus your initial meeting on project needs and objectives.
Rather than learning about character traits and how a contractor will fit into your company’s culture, focus on specialized skills and the experience that will help the contractor complete the task. This approach will emphasize your need for project-based services over full-time employment.
2. Create a service agreement
While independent contractors will not need to receive required benefits like superannuation contributions or leave time, creating a service contract is still a vital step. Clarifying terms for this business transaction will prevent any unlawful terminations or disputes about the relationship. 다음을 포함해야 합니다.:
- A description of the project to be completed
- 종료 조건
- Payment method and schedule
3. Introduce necessities
While independent contractors have the freedom to complete a project in the way they see fit, a brief introduction to the company can help familiarize them with the workflows and tools.
Introduce them to the contacts within the company and anyone they might collaborate with. You can also clarify your process for assessing the project.
How to pay independent contractors in Australia
While employees typically receive pay periodically for hours and days worked, contractors are usually paid once their service is complete. This amount should be predetermined in your service agreement before a contractor begins working for you. Your contractors should provide a receipt of this service fee once the task is complete.
Independent contractors are also responsible for their own tax obligations, so you will not need to withhold any sum for the relevant tax authorities.
Termination of independent contractors
You may only terminate an independent contractor if they fail to perform the obligations outlined in the contract terms, by mutual agreement, or if the contract allows for termination at a specified time. If you terminate an independent contractor outside of these terms, the legal system will determine the termination unlawful.
Turn to Globalization Partners when hiring independent contractors in Australia
As an extension of Globalization Partners’ Global Employment Platform™, G-P Contractor allows companies to hire anyone, anywhere, for both short- and long-term projects. 직원을 고용하든 계약자를 고용하든 관계없이 전 세계 인력을 위한 단일 솔루션으로 프로세스를 간소화합니다. 자세히 알아보려면 지금 당사로 문의해주시기 바랍니다.
$
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. 항상 자신의 법률 고문 및/또는 세무 고문과 상의하고 이에 의존해야 합니다. Globalization Partners는 법률 또는 세금 관련 조언을 제공하지 않으며 정보는 회사 또는 직원의 특정 상황에 맞게 조정되지 않습니다. Globalization Partners는 이 정보의 정확성, 완전성 또는 적시성에 관해 어떠한 진술이나 보증도 하지 않습니다. Globalization Partners는 정보의 사용 또는 의존으로 인한 손실을 포함하여 정보와 관련하여 발생하는 어떠한 책임도 지지 않습니다.
Powered By OneLink