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Applying the 4 minimum conditions to individual contractors (PAYG)

If you’re a contractor who read our earlier news item Work Choices: Minimum Working Conditions you may be wondering how the four minimum working conditions apply to you.

At a recent industry briefing, we confirmed that these conditions don’t have a big impact on our contractors.

Condition 1: Working a 38 hour week

You may still expect a normal working week to be 38 hours with ‘reasonable’ additional hours. Although a client cannot force you to work additional hours, you may choose to if requested. If you are working additional hours, you should first confirm with the client that they are happy to pay for the additional time.

Conditions 2 – 4: Leave entitlements

We have confirmed that our current practice of calculating your rate, so that it includes a loading to pay out annual leave and other entitlements, is still permitted. At present the hourly rate is calculated as an equivalent permanent rate plus a 20% loading. This is the standard approach taken by most reputable agencies when establishing pay rates.

For more information on legislation see the WorkChoices website.

Posted 09/11/ 2006