Originally Posted by
Xeptu
A flying Instructor would be under a flying schools/check and training organisations operational control and therefore at least a casual employee of one of those organisations.
Can you give me an example of where that is not the case and defined as a sham contractor.
The rules never go on the shelf Bob.
Sham contracting is when the new instructor is told "Get an ABN, I will pay you x per hour and you invoice me at the end of the month" There are still some businesses that do this. Because they know they probably won't get caught and it allows them to compete with the business next door, they know that wide eyed brand new pilots will agree to just about anything to get that first JOB.
It is risky as the penalties are very high, and employers now should realise that the same "contractor" can take them to the cleaners through the Fair Work Commission if/when they realise they are being ripped off.
The definitions are here:
Sham arrangements – Division 6 | General protections benchbook (fwc.gov.au)
That's just Fair Work, there is also the Australian Tax Office that can come after you.
Myths and facts | Australian Taxation Office (ato.gov.au)
I understand the fines are hefty and precedent has been set where these employers (for that is what they are) have had to back pay the correct rates, the tax, super, leave entitlements etc. This is the sort of thing that CPL students should be made aware of during their training.
In this case skydiving is a private operation and the pilot has more autonomy that a pilot working under an AOC or Part 141/142 organisation does, so a contracting arrangement is feasible.
Also someone mentioned that super kicks in after the employee has earned more than $450 in a calendar month, this is no longer the case, it is now 10% of every dollar.