Contracting can provide flexibility to small businesses and can be an excellent way to earn money for your specific skills. There are differences to being a contractor as opposed to an employee. As a contractor you may need to actively seek out some of the protections that are standard for employees.
Here are some steps to consider when you’re accepting a new contract.
1. Get it in writing. It is always better to be more formal than a text or something agreed over a message plat form. Have a contract that steps out:
- What you are expected to do.
- What you will be paid, how and when.
- What happens when you can’t do the work, e.g. you get sick.
- What happens when you’re no longer needed, or you want to move on.
2. How will you get paid? Don’t leave it up to the last minute to ask this question. Sort it out before you start.
- Will you be paid weekly, fortnightly, once a month, or when the work is completed?
- Do you need to invoice for the work? • How will you record your work? Using an app, spreadsheet, timelog?
- Is superannuation part of the payment?
- And don’t forget you might need to pay tax!
3. Check your rights. Contractors are generally not entitled to the National Employment Standards or awards, unlike employees.
- Do you need insurance? What will happen if you hurt yourself, damage property, or lose a window on a truck. Who pays? Who protects you?
- Some industries have non-compete clauses. This might stop you working for a competitor or even doing the same type of work in the same city area for years.
4. What are you being paid for? What risks are you taking on?
- Will you need to cover the costs of using your own vehicle or tools? Or travel and accommodation?
- If working for commission, discuss whether there’s a base rate, and whether that amount would be enough for the work you are going to do if you don’t make commission.
- If the job relies on referrals or leads, think about how confident you are that leads will be provided.
5. Have your evidence. Back yourself.
- Take photos of finished work, get written confirmation, record what you did and when and where.
- Make sure you understand upfront who is liable for damage to vehicles and equipment.
- Record evidence of any equipment or vehicles you’ve been given to use, so you can show you’ve returned them in the same condition. Take photos/videos of the evidence so you can confidently put your side of the story forward, and there’s no surprises. Remember, you might want more work from them later – you’ll have more luck if you’re honest and professional, than if you try to hide mistakes.
- Know how to deal with a dispute. Know where you can go for help. You can start with our 5 steps to resolve your dispute and our dispute support tool.
6. Look after your mental and physical health. It can be isolating working as a contractor, and there can be a lot of demands on your time.
It may be hard to turn down that contract that seems too good to be true, but make sure you take the time to think through what’s on offer, set it up right, listen to your gut feeling, and ask for help if you’re not sure. If you’re a delivery driver, you might want to consider these steps more closely.
1. Who owns the vehicle you’re being asked to drive?
- Does it belong to you or to the company you’re driving for? Is it a rental vehicle? This is important to know as it can change who is liable for any past or future damage.
2. Who owns the insurance on the vehicle?
- Is it the owner of the company you’re working for, or do you need to get your own insurance? Is there an excess on the insurance cover, that you will be expected to pay if you do cause damage? How much is that excess?
3. Before you drive - Get a record of all damage already on the vehicle.
- Take photos and videos. Share them with the person contracting you if you can, all to establish what damage was done before. Keep the records and find a way to identify them so it’s clear where they came from.
- If you smoke, confirm whether you can smoke in the vehicle or not. Damage from smoking – even if it’s just smell – can be considered damage to the vehicle and may impact your relationship with the contractor, and your obligations.
4. If you damage the vehicle, don’t hide it, make sure it is appropriately reported.
- Take video or pictures of the damage and write down what happened as soon as you can. Keep records of the damage, and let the company know. If you want more work from this company, it’s always best to be honest and professional, even when mistakes happen.
Our website will provide more information on options available to you to resolve a dispute. You can also contact us for support.
While we can’t help you write a contract, or determine who is right or wrong, we can help you understand your rights and clarify your issues, and prepare you to resolve a dispute.
For more information, please check these links below: