Independent contractors have different rights and protections compared to employees. Their entitlements are primarily governed by the Fair Work Act 2009, but they negotiate their own pay and conditions. Here’s a breakdown of their key rights:

1. Workplace Protections

Contractors are protected from:

• Adverse action – A business cannot terminate a contract because a contractor exercises their workplace rights.
• Coercion – A business cannot threaten or pressure a contractor to suppress their rights.
• Freedom of association – Contractors can freely join or refrain from joining a union or employer group.

2. Pay and Entitlements

• Contractors negotiate their own pay rates and working conditions.
• They do not receive employee benefits such as minimum wage, paid leave, or unfair dismissal protections.
• Some contractors, such as regulated workers in the gig economy and road transport industry, have minimum standards for pay and conditions.

3. Tax and Superannuation

• Contractors must pay their own income tax and may need to pay GST.
• Some contractors may be entitled to superannuation contributions if they are paid mainly for their labor.
• If not eligible for compulsory super, contractors can make voluntary contributions to their super fund.

4. Security of Payment

• Contractors in the building and construction industry have legal protections to ensure they receive payments due under their contract.
• Each state and territory has security of payment laws to resolve payment disputes.

5. Unfair Contracts

• Contractors can challenge unfair contract terms through alternative dispute resolution (ADR), the Fair Work Commission (FWC), or courts.
• The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) provides guidance on resolving disputes.

For more details, you can check out the Fair Work Ombudsman’s website here or explore contractor protections here.

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