Hiring Contractors can be difficult for small to medium sized businesses. Businesses will need to know what is the difference between an ABN (Australian Business Number) contractor and a PTY LTD contractor (ACN Contractor).
An ABN contractor is a contractor who hires out their own personal time and skills and may provide some of their own equipment such as a motor vehicle or tools to perform the contracted services. An ABN contractor can be a sole trader or a partnership.
ABN contractors must be able to prove that they are carrying out business rather than being an employee of a business that has the benefit of the services. This could mean owning their own truck, providing their own tools, or they only get paid for the successful completion of the services.
ABN contractors must not be controlled in the way they perform services in the same way an employee would be controlled. If these tests cannot be met, the ABN Contractor could be an employee and be entitled to leave overtime and an unfair dismissal claim.
A PTY LTD contractor is the preferred contractor for contracting business in Wollongong and The Illawarra. Such a contractor will need to have an ACN (Australian Company Number) which means that they supply services through a company
A business in Wollongong / The Illawarra must have the correct contracting agreement for the type of contractor they are hiring being ABN Contracting agreements or ACN Contracting agreements.
HR/IR Solution can provide businesses in The Illawarra and Wollongong with ABN Contracting Agreements and ACN Contracting agreements that meet the needs of the business.
Remember if the agreement is not correct, a business may unwittingly be forming a ‘sham contract’ and the ‘contractor’ may be seen as an employee
Call John on 0407 069 507
Visit: HRIRsolutions.com.au
Email: john@HRIRSolutions.com.au
