Pilots - Contractors?

[Wing Root]

I am slightly concerned about what is happening with regard to pilots being "employed" under a contract basis.

I quote from the government's "Wage Net" website and I encourage those contracting their services as a pilot to answer these questions:

Certain business and administrative actions that an employer must effect are significantly dependant on whether a person is an employee or independent contractor. These actions include making PAYG tax deductions, superannuation payments and satisfying certain award obligations.

1. Is the worker paid a wage or salary?
2. Is the work performed at the employer’s place of business?
3. Does the worker work regular or defined hours?
4. Is the worker engaged to produce a certain result, the completion of which will terminate their relationship with the employer, at least for the time being?
5. Does the worker provide their own plant or equipment as a means of accomplishing their work?
6. Does the worker have the right to sub-contract their work?
7. Is the worker subject to detailed or direct control or could the employer subject them to such control if they chose to?

The person is likely to be an employee if you answered 'yes' to questions 1, 2, 3 and 7, and answered 'no' to 4, 5 and 6.
Sometimes, the answers to 4, 5 and 6 may be "yes" and the person could still an employee.
If the answer to question 7 is "yes", the worker is most likely to be an employee.

I'd suggest that anyone being paid as a pilot fits firmly into the employee description yet how can it be that there are so many being paid as a contractor?
Is it that the minimum $45 per flying hour casual GA Award rate is just too much for most employers?

In the following situations what would happen as a flying instructor contracted to provide that service versus being employed to do so.

• As part of your duties as instructor while refuelling an aircraft you splash fuel in your eyes requiring medical treatment.
• As pilot in command of an aircraft during a training sequence you are involved in a landing accident involving extensive damage to the aircraft and you and your student suffer serious injuries. Your student then sues for ongoing medical treatment, loss of income etc.

I have no idea as to how to answer these questions. Let's say you are covered by health insurance but the provider finds out that the injuries were sustained as a result of work. They inform you "This is a matter for Work Cover." The employee instructor should have no problem - where does the contractor stand?