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7 December 2006
This week, Federal Parliament passed the historic Independent Contractors Act 2006. Independent Contractors of Australia (ICA) sees the Act as a step in a new direction for independent contractors/small business in Australia. The Act will become law in early 2007.
Since ICA was formed in 2000, we have lobbied hard against laws that seek to treat independent contractors as employees. These laws, which predominate in State jurisdictions, have sought to deny people their fundamental right to work under commercial contracts instead of employment contracts.
In June 2006, the International Labour Organisation recognized in principle the legitimacy of the commercial contract and that labour regulations should not intrude into commercial contracts. The Australian Council of Trade Unions has supported this principle, as have Australia's peak industry associations, including the Australian Chamber of Commerce and Industry.
The Independent Contractors Act is the first legislation in the world that seeks to apply this important principle in legislative form. The attempt is welcome.
The Act:
- gives most Australian independent contractors protection from State laws that seek to pull them into industrial relations-type regulation;
- is the first serious attempt, worldwide, to give workers protection from sham contract arrangements.
ICA is committed to the position that all independent contractors should be given the protections afforded under the Act. The owner-drivers and outworkers who are excluded from the Act are being denied protection from inappropriate State laws and from sham contracts.
No independent contractor should be excluded from the protections of the Act. ICA will continue to work to achieve this objective. To this end, ICA will seek to participate in the reviews being conducted by the Government during 2007.
ICA will also monitor the application of the sham contract arrangements---particularly to ensure that any prosecution processes are impartial and have integrity. We will be alert to any failure in this area. We will seek amendments to the Act should such failure lead to intimidation of people engaging independent contractors.
In January 2007, ICA will produce material directed towards assisting a full understanding of the Act.
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