HR Guide to Contracting Physiotherapists

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The HR/IR Solutions Guide for Small and Medium Businesses in Wollongong: How to Contract Physiotherapists

As mentioned in previous articles, there is an important distinction between employees and contractors. The way to distinguish between the two is the contract signed by both parties. Most people can be contracted or employed, but your business must get the necessary documents right in order to avoid potential penalties.

The difference between a contractor and an employee is contractual and this is the document that courts will primarily use to distinguish between the two.
A contractor will work for themselves or their own business, have control over how and when the work is completed, will generally submit invoices for specific work performed and will generally use their own equipment.
An employee will work for your business, you will control the timing and how the work is completed, will be paid at a fixed rate, use your equipment, and importantly, will be entitled to employment benefits such as annual leave, parental leave and sick leave.

The benefits of hiring a physio contractor are that you will avoid expenses which are associated with the Modern Award. The award for physiotherapists is the Health Professionals and Support Services Award 2020. Such expenses include leave, travel expenses and protection from dismissal.

To hire a physio as a contractor, it is important that the contract is drafted correctly. The contract must be explicitly clear that the relationship is one of a contractor. This is in line with a recent high court decision, ZG Operations Australia Pty Ltd v Jamsek.

The contract should ensure to not only state that contractor relationship, but the clauses of the contract must be in line with such a relationship. There must be clauses which state that the contractor is to use their own equipment, that the contractor has autonomy over how the work is completed (in line with professional and legal standard) and that invoices must be submitted for each job.

It is additionally important that the contract should be between your own business and the business of the contractor. If they are an ABN contractor, the ABN should be provided within the contract. If they are an ACN contractor, their ACN should be provided. See our article about the difference between the two.

Such contracts can be difficult and should be carefully drafted for the safety of your business. The penalties for accidentally creating a ‘sham contract’ can be severe and will include backpaying for leave and other award-dictated entitlements.

HR/IR Solutions Wollongong are employment law specialists and can help you draft physio contracts, or any other contracts required for your business in the Illawarra. If you wish to speak about such a contract, speak to John Morrissey.

Call John on: 0407 069 507

Visit: HRIRsolutions.com.au

Email:  john@HRIRSolutions.com.au

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