Read our Case Study from the Tree Care Industry

Now Actually supports Businesses in remaining compliant with the law.

2 May 2023

The Challenge

The business had engaged individuals to support with the operational side of the business. The employment relationship was not clear. Given the nature, frequency and the type of work being conducted it was challenging to determine whether the individuals were Employees or Contractors. There were several conflicting variables that made it difficult to have a clearly defined answer. 

Secondary to this problem, if deemed Employees then it needed to be determined which award and remuneration rates were applicable. This also then questioned whether superannuation is due and operating conditions where applicable.  

The Solution

To successfully identify whether the individuals where Employees or Contractors we needed to conduct a full role analysis. This involved understanding the roles on both a macro and micro level.  

Once we were able to understand the frequency of the engagement, who was responsible for what, how they represented themselves in the marketplace and who was responsible for organising the work, we could then look at the tasks performed within each role. In doing this, we were able to undertake an award interpretation and classification. Which, in turn allowed us the ability to culminate a “Better of Overall Test (BOOTS) on the current company rates versus the award rates. 

Having gained this insight, we held sufficient data to present to both the client and their accountant to discuss the implications of both types of engagements in the business. This information not only related to wages, but around conditions of employment such as time keeping, breaks, allowances and superannuation liabilities.  Armed with this information, we spoke about potential Employer liabilities and financial implications associated with both types of engagements and how that looked from a comparative perspective.   

Consequently, through collaboration, as a collective we were able to make the conclusion that these individuals were Contractors. As a result, we were then able to introduce Contractor Agreements in place to safeguard the Employer. 

The Impact

By undertaking this scope of works the Employer was able to define his Employer financial obligations. In doing so he specified the employment relationship moving forward and introduced a safeguard via the Contractor Agreement to outline the terms and conditions of the employment relationship. This was also done to prevent Unfair Dismal claims and General Protection Claims from Fair Work in the future. Having financially analysed what was legally required in terms of payment against what was being provided also reinforced that the current arrangement was fair and reasonable.  

It also gave clarity around how the individuals represent themselves when engaging on behalf of the business and who is responsible for what. 

As a small business owner, it’s hard to stay on top of employer obligations – I had engaged a number of people to assist me in my business. I was unsure as to whether or not these people were employees or contractors. I engaged Now Actually Human Resources to assist with understanding the differences and the obligations of both. In conjunction with my accountant, we were able to determine the best outcome for us and put in appropriate safeguards and paperwork.

Arborist Northern Territory
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