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Construction work Definition


building workerWorkCover Queensland Compliance and Education business Advisors happen educating Queensland building employers about who's an employee for employees’ settlement reasons.

In this economic 12 months alone, we’ve conducted site visits to over 1, 000 employers in carpentry solutions, house construction, flooring covers and painting and plastering services, to name a few.

These visits uncovered some typically common misconceptions in construction business.

1. The 80% rule

“This specialist doesn't work for me personally more than 80per cent of their time.”

Fact: The 80per cent guideline applies only to the way private income is reported into Australian Taxation workplace (ATO). It does not have a bearing on the timeframe that they're engaged by a particular company.

The 80percent rule does not have any relevance to worker definition.

2. Having an Australian Company Number (ABN)

“All of my employees have actually an ABN, so they cover by themselves.”

Reality: numerous employers genuinely believe that a sole trader with an ABN and a present licence is a legitimate contractor and so is a contractor for WorkCover purposes, this is not the situation. It is the entity kind together with arrangement where the contractor is involved to do works which determines if they are considered a worker.

An ABN only investor is deemed a worker.

3. Entity type vs company trading title

“This worker has actually their business/trading name.”

Fact: Some contractors trade under a company title nonetheless this does not usually indicate they're a business. WorkCover looks at their entity kind which could still be an ABN sole investor.

a specialist might have a trading name but still be an employee.

4. Specialist abilities and qualifications

“We have arranged because of this worker to wait a course to qualify for a business licence and become a ‘legitimate contractor’. Whether They Have their Contractors licence they've been a contractor.”

Fact: A majority of these workers are engaged on a hourly price, focusing on several projects in a group/gang arrangement.

Despite skills, it is the nature of the involvement which WorkCover talks about.

5. Short-term work

“I’m therefore busy that i simply required a laid-back to simply help for a few days nonetheless it ended up being for such a short while, i did son’t believe I had a need to protect all of them.”

Fact: The determination of a member of staff has no relevance into the length, time or length of wedding. After you have engaged anyone to perform works under a rate arrangement they'll certainly be considered a member of staff.

Regardless of employment duration, casual staff can certainly still be deemed employees.

6. The worker desires to be a contractor

“This employee explained he had been a contractor.”

Reality: nearly all single traders want to be seen as legitimate contractors irrespective of their particular involvement. Often they are going to establish a contract centered on rates and wrongly think this will make them the best specialist.

It's the sort of agreement in addition to working arrangements that indicate that is an employee.

More info

There are a number of examinations to determine who is a worker, and these are obtainable on our internet site or via the ATO web site.

If you aren’t certain about whom you should declare as a member of staff, or perhaps you want more information on workers’ compensation associated issues, be sure to contact us on 1300 362 128 to go over your individual circumstances.



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