Is that for real?? Place i am working with (small charter company) makes us as subcontractors, so we don't get anything. Is that even legal???
There must be two operators in WA that do it, the other being a bit further north an where Polar is based.....I have lost count of the pilots that have moved through this place, but when good pilots (and good blokes i might add). I hear the palce has just received a payrise, yet still well below the GA pilot award and yes your still a contractor...So this means your have to pay for super (9%), work out your own tax, have your own workers comp...also what happens if you bust up a plane and its deemed the "pilots fault" does that mean he will sue you for failing your job as a professional contractor? Try to recover the cost of the equipment you busted up....Also makes it alot easier to get rid of pilots as "we dont require your contracting services anymore".. Yet the funny thing is that through the grapevine I have not heard of anything being signed for when you start up, its a case of we own you 24/7 if you dont like it leave...which makes me think that your more an employee than a contractor...say I only want to work weekdays? Is it possible to charge more for weekends or public holidays? what about late/last minute call outs, plumbers/locksmiths etc charge up to $200 for a call out plus an hourly rate...
From a business owners point of view it makes perfect sense, dont have to pay super, payroll tax, pay extra for workers comp.... when business is slow you dont have to pay your employee's, no wait sorry contractors...
But the stone is turning, its sad when a pilot with 300hrs and has just started with the said company is looking for work elsewhere as they are feed up with it all...all after the best part of 3 weeks...
Well for a start, it may well result in a breach of the tax and superannuation laws.
The Tax office has a fairly set idea of what an "employee" is, and what a "contractor" is.
A contractor:
- *supplies his own tools
*supplies his own work systems
*may set his own work times and make his own arrangements to do the work
*may take instructions from the primary contractor about what work shall be done or the outcomes, but not how the work is to be done; and
*does work for a number of different clients.
If you work more than 80% of your time with the one employer, if you don't supply your own aircraft, if you turn up to work when he says, and if you do his work his way and under his direct control, you are an employee.
If that is the case he
MUST pay tax for you (deduct it from your wages) in the PAYG system and he
MUST pay an extra 9% of your salary into superannuation.
Here's the first link I found when I Googled "Tax Law contractor":
CONTRACTOR OR EMPLOYEE?
Here's another tool, this time from the ATO:
Employee/contractor decision tool
If you're still confused, and if you're a member, ring the AFAP for some advice.
So if the boys that have gone through this place get in touch with AFAP and the tax office and they have kept all relevant documentation
to prove they worked there and did the hours etc then are they entitled to being back paid? say atleast 15 pilots at $25k/yr thats over $30k in super payouts....is it possible to charge interest if you havnt been paid super for a year or so? Plus back pay from being paid under the award so make that another $15/hr at 500-600hrs a year (thats airswitch
) so $15/hr x 500 = $7500 over 15 pilots...over $100k......so thats atleast $130k extra in someones back pocket instead of the pilots....
Just to get you thinking....As operators are making money...time to get want you deserve....nah WHAT YOUR ENTITLED TO!!!!!
CMN