A Question for Contractor Pilots/Instructors
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A Question for Contractor Pilots/Instructors
Just a question for all you guys/gals who are working as contractors in the aviation industry.
It has come to my attention after a recent incident that as a contractor Pilot, I am personally liable for such things as workers compensation, public liability and professional indemnity insurance.
The costs for such insurance not only means that I am actually earning even less than what I am (which is barely enough) after payments for such insurance is taken out.
Have you guys/gals come across this or are there people out there flying without insurance and don't even know it?
Another question, is there a professional body which actually provides Aircrew such protection? Yes I am already a member of AOPA for better or worse.
It has come to my attention after a recent incident that as a contractor Pilot, I am personally liable for such things as workers compensation, public liability and professional indemnity insurance.
The costs for such insurance not only means that I am actually earning even less than what I am (which is barely enough) after payments for such insurance is taken out.
Have you guys/gals come across this or are there people out there flying without insurance and don't even know it?
Another question, is there a professional body which actually provides Aircrew such protection? Yes I am already a member of AOPA for better or worse.
An operators liability policy will provide vicarious liability for contractors or sub-contractors working on their behalf but it will not cover the actual contractor (ie: you). Should the operator become legally liable resulting from your negligence, their insurers would defend them, subject to the terms and conditions of the policy, and seek subrogation from you. This is one of the reasons for the requirement by insurers that insureds insist that any contractors working on their behalf maintain their own policies for liability and worker's comp (or personal accident if not required by legislation to hold w/c).
Without getting too technical, this requirement is essentially to ensure that whichever insurer pays the claim will have some form of recourse against the person responsible for the injury or damage.
Forget AOPA there is nothing they or anyone else can do. It's not an aviation industry issue, but a universal one. It might be worth you contacting an insurance broker to discuee your specific needs.
A
Without getting too technical, this requirement is essentially to ensure that whichever insurer pays the claim will have some form of recourse against the person responsible for the injury or damage.
Forget AOPA there is nothing they or anyone else can do. It's not an aviation industry issue, but a universal one. It might be worth you contacting an insurance broker to discuee your specific needs.
A
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A little bit off the topic but has anyone else struggled to get Life Insurance?? As a Contract Pilot, the best deal I got was that I was covered when I got into an airline, but they wont cover me when I'm flying GA aircraft.
Any good LI companies out there?
PA
Any good LI companies out there?
PA
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I would strongly recommend you contact your state Industrial Relations Commission, or similar body, and ask them for the low-down on what your rights are and what you need to do to cover your arse. Afterall, in such a litigous country such as Australia (I think we now out do the Yanks for sily and baseless litigation cases ie the coffee you sold me burnt my mouth...der!!!).
As a contractor, generally you get paid more but you also need to fork our more for such items that you have already mentioned, plus superannuation to I believe. Best to get the exact low down asap before ol' Murphy comes by and gives you a good upper-cut!
As a contractor, generally you get paid more but you also need to fork our more for such items that you have already mentioned, plus superannuation to I believe. Best to get the exact low down asap before ol' Murphy comes by and gives you a good upper-cut!
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BlekDuck. Are you legally a "contractor"? You should check with the Australian Tax Office. I think if 70% or greater of your income is derived from one employer, you can not be deemed a contractor, but an employee.
And if you are a contractor, not only would you be liable for liability and indemnity insurance, worker's compensation, taxation etc., but also the superannuation levy. If you are not registered for GST, is your employer withholding the appropriate tax levy? You may find the sum of those expenses may well exceed your income.
Why do pilots go down the ludicrous path of trying to become "contractors"? They are simply being exploited by unscrupulous operators.
And if you are a contractor, not only would you be liable for liability and indemnity insurance, worker's compensation, taxation etc., but also the superannuation levy. If you are not registered for GST, is your employer withholding the appropriate tax levy? You may find the sum of those expenses may well exceed your income.
Why do pilots go down the ludicrous path of trying to become "contractors"? They are simply being exploited by unscrupulous operators.
Paul, there was a thread going a while back that talked about life insurance for GA pilots, can't remember what it was called, unfortunately, but try a search; might help.
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AOPA can't help you and AFAP will only help you if you are a member.
Look VERY carefully before becoming a contractor.
1. I believe the Award can only be varied (for an AWA etc) with the approval of the AFAP and/or Industrial Relations Commission. Contrary to the myriad of "employment conditions" signed by many in the GA industry, these aren't worth the paper they are written on.
2. There are specific guidelines the ATO and other govt departments use for employment classification. There is a document somewhere on the ATO or DEWR websites. It lists exactly what conditions need to be met to classify as a contractor. Briefly, a contractor provides their own equipment to do the contracted work/task, completes the task to their own schedule and can contract for any number of companies.
I have spoken to ATO, DEWR and a host of insurance companies. Not one agrees that you can provide contract services as an individual pilot. Contracting companies are a different story.
Of interest, when I rang around a few insurance companies, they all said it would be prohibitively expensive and why wasn't my employer taking care of it.
I think CASA might also be interested in the insurance angle. Doesn't part of your AOC approval process ensure the company and crew are suitably insured?
Good luck!
Look VERY carefully before becoming a contractor.
1. I believe the Award can only be varied (for an AWA etc) with the approval of the AFAP and/or Industrial Relations Commission. Contrary to the myriad of "employment conditions" signed by many in the GA industry, these aren't worth the paper they are written on.
2. There are specific guidelines the ATO and other govt departments use for employment classification. There is a document somewhere on the ATO or DEWR websites. It lists exactly what conditions need to be met to classify as a contractor. Briefly, a contractor provides their own equipment to do the contracted work/task, completes the task to their own schedule and can contract for any number of companies.
I have spoken to ATO, DEWR and a host of insurance companies. Not one agrees that you can provide contract services as an individual pilot. Contracting companies are a different story.
Of interest, when I rang around a few insurance companies, they all said it would be prohibitively expensive and why wasn't my employer taking care of it.
I think CASA might also be interested in the insurance angle. Doesn't part of your AOC approval process ensure the company and crew are suitably insured?
Good luck!
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A little while ago there was this little leprechaun....
I recall about a year ago there was a 'small man' trying to wave his pathetic will over employees with contract labour... so much so that pilots that refused to initially sign were either given no flying (hence no income and job) or were passed over in favour of those who did sign the contract.
For the benefit of the greater good - a few brave pilots under the leprechaun's employ stood up and fought for what they were legally entitled - the GA Pilots Award.
Today, pilots in this company now enjoy the protection that an AFAP sanctioned EBA affords them. More importantly, it makes 'HA' play by the same rules as we have (and the rest of the NT).
I say do not go for contract labour - whilst your employer may not be a
like HA, a contract creates many holes in your liability and work conditions - unless it is a watertight contract, be very wary. Think about it - why would an employer change to a contract if it did not hold benefits for them. Do you think they are doing it for the employees?????
To the guys that got the N*C EBA going - well done. Your efforts were appreciated by a lot of guys not only at NAC but also the greater NT GA scene.
For the benefit of the greater good - a few brave pilots under the leprechaun's employ stood up and fought for what they were legally entitled - the GA Pilots Award.
Today, pilots in this company now enjoy the protection that an AFAP sanctioned EBA affords them. More importantly, it makes 'HA' play by the same rules as we have (and the rest of the NT).
I say do not go for contract labour - whilst your employer may not be a
like HA, a contract creates many holes in your liability and work conditions - unless it is a watertight contract, be very wary. Think about it - why would an employer change to a contract if it did not hold benefits for them. Do you think they are doing it for the employees?????To the guys that got the N*C EBA going - well done. Your efforts were appreciated by a lot of guys not only at NAC but also the greater NT GA scene.
