A reform opt-in agreement is a written agreement, which is made during the transitional period, between an independent contractor and the person employing them (their ‘principal’) stating they no longer want state or territory contractor laws to govern their contract.
Reform opt-in agreement protections
The Independent Contractors Act 2006 provides certain protections to parties signing a reform opt-in agreement, such as a person must not:
- take (or threaten to take) any action to coerce someone to sign, or not sign, a reform opt-in agreement
- not take, or threaten not to take any action to coerce someone to sign, or not sign, a reform opt-in agreement.
Also, a person must not knowingly make a false statement to persuade or influence another person into signing, or not signing a reform opt-in agreement.
Penalties for breaching opt-in agreement protections
The Independent Contractors Act 2006 provides serious penalties when these laws aren't followed.
Independent contractors can ask the Fair Work Ombudsman for help if they feel their rights in relation to opt-in agreements haven't been met under the Act. If they are in the building industry, they can ask the Australian Building and Construction Commissioner (ABCC) for help.
Fair Work Inspectors may take a principal to court if they find that the principal has breached the opt-in agreement protections in the Independent Contractors Act 2006.
The courts may order the employer to pay a penalty of up to $33,000 for a body corporate or $6,600 for an individual for each contravention.
Need help? Call the Independent Contractors Hotline on 1300 667 850.