Pilots under contract
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Pilots under contract
A few of my friends have been working in the outback under the banner of contract pilots. Unless I'm mistaken, the IR laws apply the 'control test' when differentiating between contractors and employees. This test states that if the majority of the following are present, then the person (pilot) is clearly not a contractor.
Is this true???
- Hours, duration and location of work dictated by employer
- equipment (planes) provided by employer
- Employee under direct supervision of how they perform their job
- over 80% of income from one employer
- The employee is paid a set wage
- etc, etc.
Is this true???
I don't want to be the best pilot in the world - Just the oldest
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CAPT High,
I would suggest you are pretty spot on with your comparison of contractor vs employee although it has probably not yet been tested. It is popular method by operators to abrogate their responsibility to pay; sick leave, holiday pay, workers comp, superannuation etc etc etc.
I would suggest you are pretty spot on with your comparison of contractor vs employee although it has probably not yet been tested. It is popular method by operators to abrogate their responsibility to pay; sick leave, holiday pay, workers comp, superannuation etc etc etc.
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I think that you will find that the "control test" that you refer to is actually a ruling by the tax department and not an IR law. It doesn't allow for some deductions that a true contractor would receive.
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Gday captain high
Can I ask if you are working under this contract system? If so I would make a suggestion that you just leave well enough alone, coz there are a lot of unemployed guys out there that will move in as soon as you point out the error of your employers ways.
Welcome to the real world of GA.
Cheers Q
Can I ask if you are working under this contract system? If so I would make a suggestion that you just leave well enough alone, coz there are a lot of unemployed guys out there that will move in as soon as you point out the error of your employers ways.
Welcome to the real world of GA.
Cheers Q
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Qnim,
No, I'm not working in aviation at all, and furthermore, I have no plans to. I saw the light a long, long time ago and have since moved on to much better (secure) things. However, seeing my friends (and others) get screwed by tight ar*e operators still makes my blood boil!! this is the 21st century, not 18th century England!
No, I'm not working in aviation at all, and furthermore, I have no plans to. I saw the light a long, long time ago and have since moved on to much better (secure) things. However, seeing my friends (and others) get screwed by tight ar*e operators still makes my blood boil!! this is the 21st century, not 18th century England!
I don't want to be the best pilot in the world - Just the oldest
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G'day QNIM,
Just because a long line of unemployed you pilots are going to prostitute themselves and agree to be screwed by unscrupulous employers does not mean that someone should "leave well enough alone".
This is wrong, everyone knows it's wrong and to advise people to sit back and do nothing is also wrong.
Just because a long line of unemployed you pilots are going to prostitute themselves and agree to be screwed by unscrupulous employers does not mean that someone should "leave well enough alone".
This is wrong, everyone knows it's wrong and to advise people to sit back and do nothing is also wrong.
Moderator
I think it's time to give this subject another airing! 
Looking at industrial relations legislation generally, I'm yet to find any pilot who can be a "contract pilot" in a commercial flying operation and still remain "legal" under Civil Aviation legislation........
....... but I'd love to be proven wrong!
Please ... no names. PM me details if you must.
Looking at industrial relations legislation generally, I'm yet to find any pilot who can be a "contract pilot" in a commercial flying operation and still remain "legal" under Civil Aviation legislation........
....... but I'd love to be proven wrong!
Please ... no names. PM me details if you must.
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Gday
Hey give us a break I never said that I condone it I’m just pointing out what is reality.
captain high
I moved from a far better paying position to GA and had put up with crap existence in the past, now I have the satisfaction of good award wage and doing something that I’m passionate about.
Cheers Q
Hey give us a break I never said that I condone it I’m just pointing out what is reality.
captain high
I moved from a far better paying position to GA and had put up with crap existence in the past, now I have the satisfaction of good award wage and doing something that I’m passionate about.
Cheers Q
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Q. I was not commenting on your post. Simply highlighting employment practices which appear to be exclusively for the purpose of avoiding fair and just employee remuneration.
It is my understanding a "contract employee" generally brings his own tools or equipment, works for more than one employer to no fixed schedule, is contracted for a specific task and specific period of time, provides his own tax arrangements, superannuation, liability insuurance and workers compensation insurance and is not directly supervised by the employer, amongst other conditions.
I think there was an IR case some time ago but don't recall specifics, that found that a contractual employment arrangement solely to avoid adequate rates of pay was invalid. Contract employment anticipates a minimum of Award casual rate of pay plus compensation for superannuation, lost leave and sick pay, workers compensation insurance etc. Effectively, a contract rate of pay would probably be at least 150% of the applicable Award hourly rate of pay.
I can't see how a commercial pilot, operating under the terms and conditions of an AOC and supervised by a Chief Pilot, could ever legally be a "contract pilot".
A pilot, engaged solely for the purpose of one non commercial flight (e.g. a ferry flight) may possibly be a "contract pilot".
But I'm open to other interpretations.......
It is my understanding a "contract employee" generally brings his own tools or equipment, works for more than one employer to no fixed schedule, is contracted for a specific task and specific period of time, provides his own tax arrangements, superannuation, liability insuurance and workers compensation insurance and is not directly supervised by the employer, amongst other conditions.
I think there was an IR case some time ago but don't recall specifics, that found that a contractual employment arrangement solely to avoid adequate rates of pay was invalid. Contract employment anticipates a minimum of Award casual rate of pay plus compensation for superannuation, lost leave and sick pay, workers compensation insurance etc. Effectively, a contract rate of pay would probably be at least 150% of the applicable Award hourly rate of pay.
I can't see how a commercial pilot, operating under the terms and conditions of an AOC and supervised by a Chief Pilot, could ever legally be a "contract pilot".
A pilot, engaged solely for the purpose of one non commercial flight (e.g. a ferry flight) may possibly be a "contract pilot".
But I'm open to other interpretations.......
Contractors look after their own super, insurance, need an ABN etc. and should therefore get a higher rate of pay.
Not working full-time or regular hours for a company doesn't make you a contractor, unless you have got all the above under control and have negotiated appropriate contracts with the aircraft owner / operator.
If you're not a contractor or a full-time or permanent part-timer, you're a casual pilot, and the company should pay super for you, at least; probably sick leave on a pro-rata basis as well.
Not working full-time or regular hours for a company doesn't make you a contractor, unless you have got all the above under control and have negotiated appropriate contracts with the aircraft owner / operator.
If you're not a contractor or a full-time or permanent part-timer, you're a casual pilot, and the company should pay super for you, at least; probably sick leave on a pro-rata basis as well.
Moderator
Arm. Someone may correct me, but I don't think an ABN is required where the total annual income is less than $50,000 per annum.
"Companies registered under the Corporations Law and business entities carrying on an enterprise in Australia are entitled to an ABN."
"Employees and hobbyists are not entitled to an ABN as they are not carrying on an enterprise."
Above from www.ato.gov.au
The $50 000 figure is in relation to registering for GST and requiring quarterly BAS statements.
Define hobbyist....
"Employees and hobbyists are not entitled to an ABN as they are not carrying on an enterprise."
Above from www.ato.gov.au
The $50 000 figure is in relation to registering for GST and requiring quarterly BAS statements.
Define hobbyist....
you're pretty much on the money when you define a contractor.
I had a similar thread running a while ago here
http://www.pprune.org/forums/showthread.php?p=1890890
Since then I've been flying under a "contract" arrangement... Although I've never signed anything to that effect. All that happens in practice is that I create an invoice to get paid. Yes, it's all a bit dodgy and would be far easier on me if I was simply an employee with the required super payments and work cover etc.
http://www.pprune.org/forums/showthread.php?p=1890890
Since then I've been flying under a "contract" arrangement... Although I've never signed anything to that effect. All that happens in practice is that I create an invoice to get paid. Yes, it's all a bit dodgy and would be far easier on me if I was simply an employee with the required super payments and work cover etc.
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Contractors?
Many moons ago I worked as a "freelance pilot" in Adelaide.
Yes, I had a registered business name etc, and accepted work from many operators, looked after my own super, workers comp etc.
When an operator phoned with a job, I negotiated a price for the flight at the same time, and sent him an invoice later. It certainly was interesting work, with a variety of aircraft, and often about two hours notice of a flight.
When the money became hard to get, I went to Alice Springs.
Hardly anyone knew anything about the GA award, in those days, and it was hard to get a copy.
The award now spells out the details for full time, part time, and casual employment. I have been at both ends of this system.
From experience I can tell you that the casual employment arrangements work, but when the level of work is such that casual employment is used there is usually not enough money flowing to make things stable and reliable. Usually the pilot does not earn enough money, and so has to do other things, and is often not available to fly. So neither the pilot or the operator are happy with this.
Unfortunately there appear to be some operators who exploit the fact that casual pilots are only paid for flying time, but they expect them to be at the office full time for no pay, until they fly. It amazes me that pilots will accept this. Also, most charter flights involve a period on the ground at the destination, and the casual pilot does not get paid for this waiting time.
A retired politician in the NT formed a company which has drawn up agreements for employment conditions for employees, and this is often used for pilots in the NT. I believe it is all legal and approved by the appropriate authorities.
It is in common use. It is very similer to the award, but it is a contract with the pilot, and involves payment for flying hours, and an hourly rate for work done on the ground, and waiting time.
Operators generally charge the client for waiting time to cover this.
With todays situation, where both pilots and operators are only looking at the short term, arrangements like this will probably become common.
Pilots have to be managers and organisers to be sucessful aviators, and the first and most important task is to manage and organise themselves.
There is often a huge culture shock, and financial shock involved in going to the outback for flying.
If you let it happen.
Yes, I had a registered business name etc, and accepted work from many operators, looked after my own super, workers comp etc.
When an operator phoned with a job, I negotiated a price for the flight at the same time, and sent him an invoice later. It certainly was interesting work, with a variety of aircraft, and often about two hours notice of a flight.
When the money became hard to get, I went to Alice Springs.
Hardly anyone knew anything about the GA award, in those days, and it was hard to get a copy.
The award now spells out the details for full time, part time, and casual employment. I have been at both ends of this system.
From experience I can tell you that the casual employment arrangements work, but when the level of work is such that casual employment is used there is usually not enough money flowing to make things stable and reliable. Usually the pilot does not earn enough money, and so has to do other things, and is often not available to fly. So neither the pilot or the operator are happy with this.
Unfortunately there appear to be some operators who exploit the fact that casual pilots are only paid for flying time, but they expect them to be at the office full time for no pay, until they fly. It amazes me that pilots will accept this. Also, most charter flights involve a period on the ground at the destination, and the casual pilot does not get paid for this waiting time.
A retired politician in the NT formed a company which has drawn up agreements for employment conditions for employees, and this is often used for pilots in the NT. I believe it is all legal and approved by the appropriate authorities.
It is in common use. It is very similer to the award, but it is a contract with the pilot, and involves payment for flying hours, and an hourly rate for work done on the ground, and waiting time.
Operators generally charge the client for waiting time to cover this.
With todays situation, where both pilots and operators are only looking at the short term, arrangements like this will probably become common.
Pilots have to be managers and organisers to be sucessful aviators, and the first and most important task is to manage and organise themselves.
There is often a huge culture shock, and financial shock involved in going to the outback for flying.
If you let it happen.
Someone may correct me, but I don't think an ABN is required where the total annual income is less than $50,000 per annum.
