Engagement of Individuals as Independent Contractors

[Preamble] Cost Centres often need to engage individuals to provide services that are not readily capable of being provided by existing employees. Such arrangements may facilitate additional flexibilities in service provision and enable the University to benefit from external and specialised skills and expertise, through the agency of independent contractors. An independent contractor can be an individual (sole trader), a company (whether small or large), or a partnership.

The following policy outlines the University’s requirements for the engagement of individuals as independent contractors, in addition to identifying circumstances under which an independent contractor arrangement generally may, or may not, be entered into.

The policy should be read in conjunction with the Engagement of Individuals as Independent Contractors: Guidelines, which discuss the key differences between independent contractors and employees, in addition to the risks associated with an improper engagement.

[Scope] This policy applies principally to the engagement of individuals as independent contractors. The requirements of this policy also apply when contracting with companies and partnerships.

This policy must also be read in conjunction with the University’s policy on Delegations of Authority to Enter Into Contracts, the requirements of which must be complied with when entering into an independent contractor arrangement.

The policy does not generally apply to instances in which the University contracts with individuals and entities that are based and operate outside of Australia.

[Engagement of Independent Contractors]

3.1 Subject to all following clauses in this policy, an independent contractor arrangement may be established between the University and an external Service Provider (an individual, company or partnership), where the Service Provider is engaged for the purpose of providing an agreed result to the University and associated work will not be performed in the same way as it would by an employee.

Further information regarding the characteristics of independent contractor arrangements may be found by referring to the Engagement of Individuals as Independent Contractors: Guidelines.

3.2 Payment will typically be made by the University to the Service Provider upon satisfactory completion or delivery of the agreed result. The amount of payment will be negotiable between the University and the Service Provider and will be made directly to the Service Provider upon production of an appropriate invoice.

3.3 The Service Provider will generally be expected to provide at their own expense all, or most, of the tools, equipment and resources required for the provision of the agreed result.

3.4 The Service Provider will generally be expected to take responsibility for any risk associated with the provision of the agreed result, including rectifying any faulty or defective work.

3.5 In all instances, the Service Provider must produce a valid and current Australian Business Number (ABN) or Australian Company Number (ACN), as appropriate.

3.6 The Service Provider will be expected to have appropriate levels of insurance coverage, including workers compensation insurance where relevant.

3.7 The responsible officer, in committing to an Independent Contractor Agreement on behalf of the University, must give consideration to any associated actual or potential risks to the University and will be responsible for managing any such risk in accordance with the University’s Risk Management Policy.

3.8 In association with the above clause, the responsible officer must give proper consideration on a case by case basis to the appropriate level of access to University information and systems that an independent contractor may be granted.

[Registration, Induction and Contractor Safety]

7.1 For the purposes of verifying and documenting safety and insurance requirements, an independent contractor who will be undertaking work on University premises is required to be a Flinders University Registered Contractor.

7.2 Registration is valid for a period of two years and must be arranged through the office of the Director, Buildings and Property.

7.3 An independent contractor who will be undertaking work on University premises is also required to complete an induction process, including being provided with a local work area safety induction. Standard forms for these purposes may be obtained from the following location:

http://www.flinders.edu.au/campus/buildings-and-property/contractor-safety.cfm