If you’ve been asked by your employer to provide an ABN in order to start work, it is likely you’re a contractor. This is fine if you are genuinely working for yourself, however some employers use contracting as a way to avoid their legal responsibilites.
New laws will help to stop that practice. Read on to make sure you’re getting the pay and conditions you deserve.
Note: This is general information only, and for more specific advice you should speak to your union.
A contract worker in Australia, often referred to as an independent contractor, is someone who provides services to another business or person without being employed by them. They typically negotiate their own fees and working arrangements, and can work for multiple clients simultaneously. Unlike employees, contract workers are generally responsible for their own taxes and superannuation contributions.
While most contracting arrangements are legitimate, unfortunately there have been cases where employers attempt to disguse an employee as a contractor in order to avoid their legal responsibilities. New laws will help to protect workers from this practice.
If you’ve ever started a new job and been surprised to be asked to provide an Australian Business Number (ABN), you might be on a sham contract, and you may not be receiving the pay and conditions you’re entitled to.
Beginning in February 2024, new laws require employers to hold a reasonable belief that a worker was a genuine independent contractor in order to use them as a contractor. There are also increased penalties for employers who engage in sham contracting.
Reach out to your union for more specific information about how you and your workmates can benefit from these new rights, or enter your details below to receive updates on your rights at work.
Read more about your new rights at work.
This publication has been funded by the Australian Government Department of Employment and Workplace Relations through the Productivity, Education and Training Fund grant program.