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SA Update: 23 March 2005
The SA IR Bill was passed after nearly 18 months of controversy. Fortunately for independent contractors, the provision 4(a) that would have denied us common-law rights to be independent contractors was rejected in the Upper House. The vote was as follows:
a) The government proposed and pushed the anti-independent contractor provision.
b) The Democrats supported the anti-independent contractor provision.
c) One Upper House independent supported the anti-independent contractor provision and one opposed it.
d) The Family First Party opposed the anti-independent contractor provision.
Independent Contractors of Australia believes that independent contractors are the smallest of small business. We have a right to exist and to have our status protected by the application of strict common law rules determined by proper courts. We see this as very much a human rights issue. We have sent letters of thanks to the MPs and political parties who stood firmly for the rights of independent contractors in rejecting the 'declaratory' provision.
Unfortunately, the 'outworker' provisions were passed, which turns any independent contractor who runs a SA home business into an employee of their clients. ICA believes that this has large potential to damage the ability of SA business people who operate from home to attract clients and could particularly impact on the SA IT sector's ability to attract contracts from outside SA.
SA Update: 2 February 2005
The SA IR Bill will be debated in the Upper House in February where the government needs the support of most of the independents to pass the Bill. ICA had discussions and communication with the Democrats and the three other independents during December 2004 and January 2005. The Bill is now in a third version after amendments in the Lower House.
ICA continues to be opposed to the Bill, in particular to provision (4a) which enables independent contractors to be declared employees against their wishes. ICA also opposes the 'homeworker' provisions which force anyone working from home to be an employee. (Who the employer would be is not clear.)
Summary of Events and Bill
In the week before Christmas 2003, the South Australian Government released a discussion paper with a draft Bill proposing changes to SA's industrial relations legislation and calling for submissions by early February 2004. Independent Contractors of Australia studied the draft Bill and considered it a radical proposal which would severely damage the rights of independent contractors. ICA made a submission to the SA Government on 4 February 2004 which detailed our concerns.
In mid-October 2004, the SA Government introduced into the Parliament a Bill to amend the Industrial Relations Act and has announced its desire to have the Bill passed and made law before the end of 2004.
ICA has studied the October Bill and considers that it is still represents a real threat to the rights of independent contractors in South Australia. The core concerns that ICA expressed in February 2004 have not been addressed. Although the wording of the October Bill is different from the draft Bill, the outcome is nonetheless the same.
Related links
Click here for an important article on the South Australian situation by Australia's leading business commentator, Robert Gottliebsen.
Click here for ICA's second submission (November 2004) [50k PDF].
Click here for the SA Government's October draft bill [150k PDF].
Click here for ICA's original submission (February 2004).
Click here for a selection of community views.
Click here for the DEWR submission.
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