QLD Working for Previous Employer as Contractor - Need a Contract?

[Adrian Dean]

My previous employer has asked me to comeback as a contractor, so they don't have to train any new staff. They are providing all tools, equipment, software required and I work in a common area within their premises, I am only bringing my skills and knowledge which is what they are paying for.

Do I need to get a contract from them outlining agreed pricing for services rendered?

And lastly, am I or my previous employer doing anything illegal under Employment Law?

 

[Rod]

Do I require to get a contract from them outlining agreed pricing for services rendered.

Yes. Though you can write your own, with your own terms. Keep in mind contractor rates are higher than wages as you get no sick leave, no super, no annual leave. Rate should be at least 15-20% higher (10% super plus leave plus downtime between contracts)

And lastly am I or my previous employer doing anything illegal?

Not sure if it is considered 'illegal per se' but chances are you will be deemed an employee by the tax office.

 

[Adrian Dean]

Not sure if it is considered 'illegal per se' but chances are you will be deemed an employee by the tax office[/

Yes. Though you can write your own, with your own terms. Keep in mind contractor rates are higher than wages as you get no sick leave, no super, no annual leave. Rate should be at least 15-20% higher (10% super plus leave plus downtime between contracts)



Not sure if it is considered 'illegal per se' but chances are you will be deemed an employee by the tax office.

Firstly, thank you for replying Rod any information is better than none.

So if I am considered an employee by the tax office will different tax brackets apply, at the moment I am going to put away $0.19 per dollar for the tax office and 2.5% of my gross for medicare levy. Or will my previous employer be taxed differently?

Will either party get into to trouble, I intend to contact an account when I have some spare cash to pay them if required?

 

[Rod]

I'm not a tax expert so can't help on tax issues.

Doubt you get into trouble with tax office as long as income is declared. The employer is the one who may get into trouble.

 

[Tim W]

My gut says that you are being scammed royally by a sham contracting arrangement.

 

[Serge Gorval]

My gut says that you are being scammed royally by a sham contracting arrangement.

sure does sound like one!

It's a sliding scale of course but I must say you are sounding like an employee, not illegal for you other than you're forgoing on certain entitlements if you are an award covered employee.

You still have protections but no way near as much as an employee would... consider asking for more money.