Charter of Contractual Fairness
On 1 July we launched our Charter of Contractual Fairness

We have heavily drawn the principles of contract fairness from the new consumer unfair contract protections laws. If it's fair for consumers, it's fair for small business people - the self-employed and independent contractors.

We are currently writing to Australian corporations asking them to commit to contract fairness in their dealings with small business people.
Election Face-off 2010
Here's how the 2 sides currently shape up for small business/self employed people! (10 July 2010)
Gillard's ALP

So far, they've told us "here's what we've done!"

• Started a superannuation clearing house
• Begun a small business online inquiry service
• Established a Small Business Advisory Committee
• New liability contract guidelines for government procurement
• National Business Name Registration
• A new guide for self-employed people
Abbott's Coalition
They've announced the first part of "here's what we're going to do!"

• A dedicated Small Business Minister who will be in Cabinet
• A new Small Business Ombudsman to handle and resolve small business complaints about the federal government
• The extension of consumer unfair contract protections to small business people
• Retention of the current self-employed (PSI) tax laws
• Stop small business red tape on Paid Parental Leave
• Mr Abbott's and Mr Billson's joint press release
What we've been asking for
• The extension of consumer unfair contract protections to small business people

• Retention of the current self-employed (PSI) tax laws. Our letter to the PM (28 May 2010)

Failure to fix unfair business contracts
ICA says "extend unfair contract protections for consumers to small business".

New laws:
Legislation #1 (March 2010)
Legislation #2 (June 2010)

Here's our summary of the situation.
How the legislation defines unfair contract terms.
Why small business people should have TPA protections from unfair contracts.
We need an answer on tax, please
We've made it quite clear that self-employed (PSI) tax should not be changed.

We've written to the PM for an answer, but we do not yet have a reply.

Tony Abbott has been clear. NO change!
Industry/Retail super funds must come out
The Cooper Review into superannuation says the big funds are not disclosing enough and must be forced to do so. This is vital. See Chapter 4.

Here's why workers' money is at risk if disclosure is not enforced.
Look after your retirement
The Cooper Review of superannuation says Self Managed Super Funds are good and need little change to existing arrangements. This is welcome. See Chapter 8.

The Report also seems to have stopped the attack against SMSF's.
Stand Up for Your (Contract) Rights!
We're monitoring contracts in general and promoting good contracts in particular. For example:
Another bad contract (Jun 2010)
One of the worst contracts we've seen (Jan 2010)
'Tom' versus DEEWR (Nov 2009)
But a positive development from government
Ken Phillips comments
And some interesting discussions
Central Banks on Debt
Since mid-May, central banks have been worried about sovereign debt. Click here for a list of useful links and summaries.
Problems with Phoenix companies
Two ICA members' tell their stories
ATO information on reporting suspect activity.

Govt's attempts to do something:
ICA comment

Newspaper comment:
The Australian
The Age/Sydney Morning Herald
Business Spectator

What 'Tom' thinks
What 'Jim' thinks
Dick Davies Writes...
"...the human fabric of the workplace precedes in importance that of technology!"
Dick Davies prods us to think about management, independence and motivation. Click here.
Stop Sham Contracts!
ICA supports the prevention of sham contracts. We monitor what's happening with them:
One person's story
Successful FWO prosecution (Dec 2009)
Info from Fair Work Ombudsman (July 2009)
First sham contract prosecution: ICA summary
Make a complaint to FWO
Business Spectator article
Read the debate
... Unquote
The Pessimists' Economic Views
(Posted January 2010)
We've brought together some pessimistic views about economics and likely economic trends in 2010:
US toxic loans
'US as sick as Greece'
Ken Phillips's summary
An 'IMF' perspective
Predicting 2010
Government debt a giant ponzi scheme?


Click to enlarge.

Ken Phillips on the debt equation


Watching Goldman Sachs
Rolling Stone magazine has blown the lid on Goldman Sachs:
Article 1 [July 2009]
Article 2 [April 2010]
Article 3 [May 2010]
Tax burden: UK versus Australia
Just as the UK is moving toward more sensible small business (contractor) tax laws, in Australia we're having to defend the progress we've made.
Laughing lawyers
You'll be amazed by the 'slips' that some lawyers make in court.
Opinion, Comment and Ideas
July 2009

We've had quite an online discussion recently about the behaviour of the recruitment industry. We've now received information about what some contractors consider to be 'secret commissions' on referrals. There's nothing wrong with commissions if they are disclosed. But just what are the principles that should operate here?

ICA's views on the matter appears below. We offer them in order to generate discussion and comment on the important topics of transparency and disclosure.

Do you have views and comments on this subject? Have you had personal experiences you can share? Send us your contributions and we'll include them on a dedicated discussion page.

E-mail your thoughts to us at: contact@contractworld.com.au.


Recruitment Agencies II: Transparency and Disclosure
(July 2009)

A contentious issue seems to have emerged in the contractor management space regarding contractor management and recruitment companies. It's an issue of transparency involving the contracts of independent contractors who use recruitment agencies.

It is common for a recruitment agent, once they find you a contract, to refer you to a contractor management company to handle the payroll, administration and insurances among other things.

You would normally expect a recruitment agency to make referrals based on what is best for you---the independent contractor and the client. The advice and referral provided should always be independent and unfettered. But in reality this may not always be the case.

Contractors have complained to us that some contractor management companies they have dealt with offer elaborate "kick-backs" to recruiters in return for referrals. These "kick-backs" are believed to include gift vouchers, plasma screen TVs, even an overseas holiday. The contractors have found out about the kickbacks after they have been induced to work through a contract management company.

There's an issue of ethics here. Someone has to wear the cost of the commissions. The question is does this practice result in independent contractors covering the cost through fees? Further, is a recruiter making recommendations the agents are personally rewarded for because they firmly believe it is the best option for you?

There's nothing wrong with commissions. It's often normal practice. The practice of offering incentives in return for business is widespread in society. The question of ethics is raised when such incentives are offered and accepted without a key party in the arrangement knowing about it. Protecting oneself from dubious advice really comes down to having full knowledge. One cannot rely on the probability that all the advice they receive is ethical and accurate.

Independent contractors should be aware of this issue and press recruitment agents for transparency and disclosure. An agent must be able to articulate why a particular recommendation is best suited to your individual requirements. Ask the following questions when a recruitment agent refers you to a contractor management company.
  1. What are the reasons I should be managed by this contractor management company?
  2. Are you getting any referral fee/reward by recommending me to this contractor management company?
  3. If yes to question 2, what kind of referral fee/reward do you receive by referring me to this contractor management company?

Have you had such experiences? What do you think of the practice? Let us know. Contribute to the discussion E-mail your thoughts to us at: contact@contractworld.com.au.