Pilot Contract

[opethical]

Have kept this one to myself for nearly 2 years. I kindly rejected the contract. Thought it might make an interesting talking point.








CONTRACT







CONTRACT made on the date set out in the Schedule

BETWEEN: the Principal and the Contract Pilot referred to in the Schedule.

The Principal hereby engages the Contract Pilot to carry out the work described in the Schedule subject to the terms and conditions referred to in this Contract.

1. The Contract Pilot shall carry out such work as is assigned to him from time to time in a conscientious, expeditious and workmanlike fashion. Where the Contract Pilot is required to provide or utilise equipment, such equipment shall be suitable for the work and shall be maintained by the Contract Pilot in good working condition.


2. The Contract Pilot warrants that he is competent and has the necessary aeronautical skills, licences and endorsements to carry out the work.


3. The terms of this Contract is set out in the Schedule.

4. Notwithstanding anything herein contained to the contrary, the Principal may determine this Contract at any time and without prior notice should the Contract Pilot be guilty of any dishonesty, serious misconduct or serious neglect of duty, or be in breach of any of the terms of this Contract, or refuse to comply with any reasonable instructions or directions given by the principal.

5. Either party may determine this Contract upon the happening to the other of any of the following events, namely:


a) if the other enters into a Deed of Arrangement or an order is made for it to be wound up;


(b) if a receiver or receiver/manager is appointed;


(c) if the other party is placed under official management;

(d) if a judgment is entered against the party for a sum in excess of [twenty thousand dollars ($20,000.00)] and same remains unsatisfied or unappealed for a period of twenty-one (21) days.


6. This Contract is personal and shall not be assigned without the consent of the other party.

7. The Principal shall make payments to the Contract Pilot as set out in the Schedule and referred to as "Contract Pilot's Remuneration".

8. The Contract Pilot shall effect all insurance required to be effected by him by law.


9. The Contract Pilot shall be responsible for and shall indemnify the Principal against liability for all loss, damage or injury to persons or property caused by the Contract Pilot, and the amount of all claims, damages, costs and expenses which may be paid, suffered or incurred by the Principal in respect of any such loss, damage or injury, shall be made good at the Contract Pilot's expense and may be deducted from any moneys due or becoming due to the Contract Pilot.

10. Throughout the continuance of this Contract the Contract Pilot shall conform at its own cost and expense with all Acts of both Federal and State Parliaments and all Regulations, Bylaws, Ordinances or Orders made thereunder including without limiting the generality of the foregoing the Civil Aviation Act, Civil Aviation Regulations and Orders, Air Navigation Regulations, Air Navigation Orders and Civil Aviation Advisory Publication and all publications of the Aeronautical Information Service and the lawful requirements of any Public, Municipal or other authority so far as the same may affect or apply to the Contract Pilot or the work carried out by the Contract Pilot, and the Contract Pilot shall indemnify the Principal

11. The Contract Pilot shall not, either during the continuance of this Contract or after its termination, divulge to any person, firm or corporation any information concerning the business affairs of the Principal or its Director and Shareholders, any of its related or affiliated companies, or any of its or their clients except:-

(a) to the extent that it can be shown that such information is publicly available other than as a result of any breach of this Contract;

(b) to the extent that it can be shown that such information was in the possession of the receiving party to the date of disclosure by the disclosing party;

(c) to the extent that the receiving party may subsequently receive such information from any third party without restriction on such third party as to such disclosure; or

(d) where the party disclosing such information is required to do so by compulsion of law but only to the extent and for the purpose of such disclosure.

12. At the request of the Principal, the Contract Pilot shall at his own expense execute all deeds or other documents required to enable any loss, damage, cost and/or expense incurred or sustained by any related or affiliated Company of the Principal or any of their Agents or Servants, which may not be recoverable by the Principal, but which if it had been incurred or sustained by the Principal would have been recoverable by the Principal, to be recovered from the Contract Pilot by any such related or affiliated Company directly.

13. The Contract Pilot acknowledges and agrees that as an independent Contractor, he shall be liable for all income tax payable upon his contract earnings pursuant to this Contract, and shall be responsible for all Workers Compensation insurance premiums (if any) applicable to an independent Contractor, for all Medi Bank contributions and for contributions to any Superannuation fund which the Contract Pilot has elected to join.

14. Nothing contained herein shall constitute the relationship of partnership or employer and employee between the parties hereto and it is the express intention of the parties that any such relationships are denied and negatived.

15. The address of each party as referred to in the Schedule hereto shall be the address of that party for service of notices or other communications hereunder which may be effected by personal delivery or by post, and if by post the date of service shall be deemed to be the day after the day of posting.

16. This Contract shall be construed and take effect in accordance with the laws of the places referred to in the Schedule. Each of the parties hereto submits to the jurisdiction of the Courts of those places including all Courts of Appeal therefrom and this clause may be pleaded as a bar to action or suit brought in any Court in any other place in the world.



SCHEDULE


1. The date of commencement of this Contract is the date of commencement of duties in the Torres Strait.......Insert date of commencement


2. The Principal is Milkwood Holdings Pty Ltd ACN 078 827 228 as trustee for the Cape Air Transport Trust trading as Cape Air Transport BN6429087 of Annan Road Cooktown.


3. The Contract Pilot's particulars are:-


Name:

Address: Horn Island 4875

Date of Birth:

Height: .....cm

Weight: .......kilos

ARN:

Hours at commencement:

Currently:

Last Medical:

Instrument Renewal: .



4. The work is:


The provision of aircraft pilot services and associated office and other duties as and when directed by the Principal in accordance with the terms and conditions of this Contract and in accordance with Air Law including without limiting the generality of the foregoing, the Rules, Regulations and Orders in force from time to time and administered by the Civil Aviation Safety Authority Australia and in accordance with the privileges and responsibility of the Pilot's Licence held by the Contract Pilot.


The Contract Pilot's remuneration shall be calculated as follows:-

The Contract Pilot shall be paid a contract gross rate as follows:-

1. Whilst on probation during line training at the rate of $100 per day whilst on base or at a designated base paid monthly in arrears upon presentation of the Contract Pilot’s invoice. (eg: Days on base = 31 x $100 = $3,100)

2. After the probation period and upon final check out to line flying, the Contract Pilot shall be paid a contract gross rate of $107 per day whilst on base or at a designated base paid monthly in arrears upon presentation of the Contract Pilot’s invoice. (eg: Days on base = 31 x $107 = $3,317)

3. Upon final P68 check out to line flying, the Contract Pilot shall be paid a contract gross rate of $127 per day whilst on base or at a designated base paid monthly in arrears upon presentation of the Contract Pilot’s invoice. (eg: Days on base = 31 x $127 = $3,937)

4. Upon final BN2 check out to line flying, the Contract Pilot shall be paid a contract gross rate of $140 per day whilst on base or at a designated base paid monthly in arrears upon presentation of the Contract Pilot’s invoice. (eg: Days on base = 31 x $140 = $4,340)

5. Upon completion of the contract, the Contract Pilot shall be paid an end of contract bonus calculated at the rate of $14 per day for each day worked based upon the invoices submitted and approved by the company (eg: Days on base= 365 x $14 = $5,110). No bonus shall be paid or due if the contract is not completed






6. CONTRACT TERM AND RENEWAL




Subject to clauses 4 and 5, the term of this Contract shall be one year.




This Contract may be renewed for further terms as agreed between the parties and subject to either party being at liberty to terminate the Contract at any time upon giving the other party not less than four weeks advance notice in writing.




7. TERMINATION




This Contract may be determined at any time without prior notice in accordance with clauses 4 and 5 thereof or in the event that the Principal, due to economic conditions, is unable to continue regular flying operations.




8. LIMITATION OF COMPLETION




The Contract Pilot covenants and agrees that in consideration of this Contract, and in consideration of the Principal providing check and training in the Torres Strait area of its air operations, prior to the commencement of this Contract, the Contract Pilot covenants and agrees not to offer his services to, accept employment with or enter into a Contract to offer pilot services to any competitor of the Principal for a period of six months after termination of this Contract; Provided however, that the Principal may release the Contract Pilot from the restraints of this clause in the event that this Contract is terminated by the Principal due to economic circumstances.




9. ACCOMMODATION AND UTILITIES AND TRAVEL




The Contract Pilot shall be responsible for all living expenses including food and beverages provisions, meals, laundry, personal telephone, clothing, uniforms, and travel to and from the designated base. (viz. Horn Island)

The Contract Pilot shall be responsible for maintaining the accommodation provided in the condition in which it was accepted and accepts liability for any damage incurred during the period of this contract.













10. PLACE OF CONTRACT




Queensland and/or The Commonwealth of Australia.

















IN WITNESS the parties have duly executed this Contract on the date as aforesaid.










EXECUTED by the said Principal MILKWOOD HOLDINGS PTY LTD AS TRUSTEE ACN 078 827 228 in the presence of:










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EXECUTED by the said Pilot Contractor




............................................. in the presence of:







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IN A NUTSHELL:- Approximate Remuneration including end of contract bonus:-


C182
C182/PA32
P68
BN2

ANNUAL
$41,610
$44,165
$51,465
$56,210

MONTHLY
$3,468
$3,680
$4,289
$4,684

WEEKLY
$800
$849
$990
$1,081

[tail wheel]

Name: MILKWOOD HOLDINGS PTY. LTD.
ACN: 078 827 228

Type: Australian Proprietary Company, Limited By Shares
Registration Date: 06/06/1997
Next Review Date: 06/06/2010
Status: Registered
Locality of Registered Office: Cooktown QLD 4895
Jurisdiction Australian Securities & Investments Commission

Last Annual Return 2002. Bit behind with their paper work?

That "Contract" would be very contestible in the Industrial Relations Commission!

[SM227]

And that is an example of a pretty good contract, right?

[eternity]

Maybe I should throw in an app over there???

[fasterblaster]

It's better than what we are getting in the Alice flying cabin twins.

By the time you pay your own tax, insurance and super it won't be. Let's not talk about the time you will waste sorting this stuff out as well! And I understand living in the straits like any remote area isn't so cheap for rent, food, beer etc

What a joke. Wonder what else they are saving money on?

[ab33t]

That is a better contract than Im getting , my piece of paper is worth nothing . Think Im going to send a application through

[mostlytossas]

I'm fairly sure you cannot be deemed a contractor if you derive more than about 70% of your income from one source. You are therefore an employee and by law must recieve the benefits of one. ie Super, workcover, etc.

[Steve888]

Can anyone highlight the problem areas amongst the legal mumbo-jumbo?

I'm guessing the fact you'd be employed as a contractor, and have to pay super, tax, insurance and accommodation are the main points? And how reasonable are the pay rates?

[wish2bflying]

Am I reading this right, that the "Contract" Pilot could be legally bound to sell every asset he/she owns to pay for damages not covered by insurance?

I think this company could get away with the Contract thing because if they're only offering a touring basis job of say, month-on, month-off, they would expect the Contractor to be securing other contracts in the time they're not on this contract ...? Unless it's set up to be a permanent full time job, in which case I don't believe they have a leg to stand on. The Pilot is an employee if he/she is working full time for one employer.

[gutso-blundo]

Mind-numbingly crap when you consider (after all deductions stated above) that your take-home will be half the quoted figure at best. And if something goes pear-shaped it's you in court defending your own arse. Oh and being contract, you're not getting paid when you're not there. You can be sure you're still being charged rent though

[Checkboard]

Parked out at a remote area, with an aircraft on this contract? You can make a reasonable amount of cash!


- Just let it be known that you will fly anyone anywhere for half the "company's price", if they pay cash and keep quiet about it.

Having your own personal aircraft can be profitable, if you don't have to pay for it, and the owner started the shafting process (so you owe no loyalty there!)

[Horatio Leafblower]

Pretty sure that particular bloke has been a contract pilot all his life and recently spent nearly 12 months in gaol in Irian Jaya. WSB I presume?

[lk978]

That contract has been written by a solicitor with a small amount of knowledge... usually the meeting starts with the owners of the business saying.

- I want the pricks to pay for their own endorsement
- I can get guys to work for this
- If they smash the plane they can f..ing fix it
- Im not paying that

and it goes on, The poor solicitor usually a guy who deals with family law or conveyoncing tries to put together a contract refering to their text books and they come up with this standard contract not ever thinking they will have to defend it.

Then the boss gets a hold of it and makes changes to suit


This has been done to death... to make it simple there is 2 bodies that deal with this.

ATO (Tax man)
- Uses the 80% rule if you are a contrator getting 80% of your income from the one person and you are not a PTY LTD company then you are an EMPLOYEE and they should be with holding your tax... easy way to fix this is just not to pay your taxes then when they audit you plead ignorence and say you thought you were an employee, not only will they chase your employer for the tax they should have been taking but they will pass the matter on to fair work australia or whatever they call themselves now.

- They also use other tests like; Do you have a chain of command, Do you wear a unifrom, do you recieve directions or is it a pay on completion type of agreement, is there a contract, is 80% of your income from this one company.... and it goes on in most cases they fail all of them except for the silly insignificant contracts they have in place.

Fair Work Australia

- Basically uses the 7 or 8 tests to determine the role you have in the business. will chase up your entitlements but you usually loose your job and it ends badly.


In most cases employers are not scared of the industrial system but they **** their pants when the tax man shows up

PS Sorry about the spelling I am drunk, one thing i perfected at uni

PPS I am pretty sure you cant imdenify pilots against damage to aircraft unless it is gross neglegence

[YPJT]

Good advice lk978. The real test of this bullsh1t will be when the first hapless young "contractor" dings his bosses plane and discovers he isn't covered by the insurance. Try paying 30 or 40k worth of repairs on an IGA shelf stacker wage.

[dh.dude]

Contractors

Further to what has already been said in terms of what defines a "contractor", I thought in order to be a contractor, you had to supply your own equipment, including, in the case of a pilot, their aircraft! Maybe someone else can confirm this??

[mostlytossas]

Not so. Or at least not usually so. Many occupations have workers "on contract" that only supply their labour. Eg Draughtmen, Design Engineers, etc often work in a office using the clients equiptment, so do visiting specialists at hospitals etc miners, drivers and some tradies. All depends on what the contract asks for when you bid for it.
The important thing is as said above....how much of your income is earned from one source. Once that has been exceeded you are deemed an employee and come under the protection and obligations of the Industrial laws of Australia.
Too much of this sort of thing goes on especially in low paying ,low skilled jobs where the poor employee has no choice if they want to earn a crust.
In the aviation game the problem is too many wide eyed kids want to fly planes for a living with too few jobs out there for them. A recipe for unscupulous employers to take advantage of them.
I would suggest you report these a***holes to the authorities or at least join a union if you don't want to do it yourself and get them to do it for you. I bet the Transport Union would be very interested if the aviation unions aren't.

[notmyC150v2]

The Fair Work Ombudsman is the place to report these chappies. This contract is just not legally enforceable.

If any pilot were to commence on this contract they would be in fact and law an employee. The employer is actually accruing a substantial debt for superannuation, income tax and underpayment of wages. A "contractor" so engaged could work for 6 years and then commence action to recover all unpaid amounts for the entire period of his employment.

Then there is the fact that the Federal Court Division of Fair Work Australia takes a very dim view on employers who try to evade their obligations. Fines upwards of $200,000 have been levied within the last 12 months for such actions.

I won't go through all the legalities of the flaws in the above contract, just be assured its as legally crappy as it is morally crappy.

[PLovett]

Think of that contract as a red hot poker being inserted in your fundamental orifice. Then you will get some idea of what is being done to you.

For the vast majority of pilots in GA you are NOT contractors, never have been, never will be. There are some but they are at the top of the tree, not the bottom.

[snoop doggy dog]

Full Time Job

It's a Full Time job and therefore all the other entitlements should be paid.
They could get away with offering that for short-term jobs, but on an on-going basis, they would have to pay for the extra entitlements if it was challenged later.

For every One pilot that declines, Two would be in the waiting to take up the offer.

If things are that tough that an operator can't pay the pittiful award, they are greedy, ready to go bust or both.

They take the punt as they will get away with it and line their pockets 99% of the time.

[Trojan1981]

I knew one Instructor (probably not an usual case) who, after working as a contractor for a certain BK flying school (now in administration I believe) made $12K after tax one year!

Why would you do it to yourself, bus drivers make more