New resources have been provided for independent contractors facing unfair contract terms.

Changes are coming for independent contractors under the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, effective from 26 August 2024. 

In preparation, the Fair Work Commission (FWC) has released new resources aimed at helping independent contractors with disputes over unfair contract terms.

The FWC's new offerings include a comprehensive overview of the changes and a video presentation by Deputy President Saunders, detailing the provisions of the new unfair contracts jurisdiction for independent contractors. 

These resources are available on the FWC website's "Closing Loopholes Acts – what's changing" page, where visitors can also find additional news and updates.

The resources lay out criteria for determining unfair terms. The FWC will assess whether a contract term is unfair by considering several factors:

  • The relative bargaining power of the parties

  • Significant imbalances in the parties' rights and obligations

  • The necessity of the term to protect legitimate interests

  • Whether the term imposes harsh, unjust, or unreasonable requirements

  • If the remuneration provided is less than what regulated workers or employees performing similar work would receive

Contractors earning at least the high income threshold, or dealing with contracts made before 26 August 2024, may still apply to the Federal Court for remedies under the Independent Contractors Act 2006.

The specific high income threshold has yet to be set, and the FWC will publish these details when available. 

A services contract must relate to work performed by an independent contractor and have a constitutional connection. 

This includes scenarios where a party is a constitutional corporation, the Commonwealth or a Commonwealth authority, or where the work is performed in a territory of Australia.