Employing Contractors vs Employees
It’s time for a change.
Recently I caught up with an association regarding the shift from “contractor” type employment to the correct form of employment structure.
We started to dig deeper unveiling that employing practitioners/therapists under “contractor” type of arrangements are incorrect.
Below are my findings:
- The practice of employing staff as contractors or % split systems has been going on for a very long time
- There are many clinics nationally employing staff as contractors not knowing the implications it has on their business- huge fines from the ATO and Fairwork for example
- Employers do not pay superannuation or other employee entitlements
- Employers have contracts in place that are not correct or who do not follow the Fairwork Act employment standards
- Many employers do not know the industry is actually covered under the Health Professionals Award
What can be done with this findings?
Firstly we all agree that education is the key to starting to create change. Educating employers and business owners on the very basic foundation of employment practices. Employment practices that cover understanding of what type of personnel to employ, on what grounds, through to the development of compliant job ads.
This all forms a bigger picture of what is called a recruitment strategy. A recruitment strategy looks at defining what employees mean to business owners and welcoming employees as part of the bigger picture.
There are many avenues employers can start to think about, once they start to understand how employees can become part of their business. Each one takes into account current and projected business growth.
Getting it wrong can be costly in every stage of recruitment. Therefore it pays to invest in your recruitment strategy or at least start to understand employment practices.
Stay tuned we will reveal in the coming weeks how you can start to learn ways to understand employment practices.