Are you a contractor, and have a working arrangement that you think is unfair? New laws introduced last year mean that as a contractor, you may now be able to make an application to the Fair Work Commission to change or cancel unfair terms in your services contract.   

We have new Q&A resources you can refer to here. 

Who can apply?

You can apply to the Fair Work Commission about unfair contract terms if you are a contractor, and if:  

  • your contract for services was entered into on or after 26 August 2024;  
  • you earn less than the contractor high income threshold; and 
  • the contract has a “constitutional connection”.  

 

How do I commence an unfair contracts terms claim?

To read about the unfair contract terms claim and how to make the claim, refer to our new claim guide here. 

The claim guide covers helpful information such as: 

  • who can make the claim; 
  • time limits for making a claim (there is no time limit); 
  • what is considered an ‘unfair’ contract term; and 
  • other information about the claim process in the Fair Work Commission.  

 

In terms of how the Fair Work Commission decides whether a contract term is unfair, they will consider various factors such as the bargaining power you have in relation to your employer, whether or not you had a choice to accept the terms given, if your rights and obligations under the contract are one-sided, or if what you get is less than what an employee would get doing the same or similar work that you do.  

What can the Fair Work Commission do?

If the Fair Work Commission decides that there are unfair contract terms, they may make an order to change or set aside (cancel) the term/s. For example, the Fair Work Commission may vary a term in your contract about your pay, to ensure your employer pays you correctly. 

Note that the Fair Work Commission cannot award compensation for this type of claim. 

 

Disclaimer: Please be aware that this blog post provides general information only. It is not legal advice.
If you have a question about how the law applies to your specific situation, you can click here to request free legal assistance.