Outworkers

Outworkers are contractors or employees who work at home or at a place that wouldn’t normally be thought of as a business location.

Outworkers are common in the textile, clothing or footwear industry.

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Understanding outworker entitlements

Outworkers must get at least the:

Awards or registered agreements may also have other minimum conditions for outworkers.

Outworker terms in registered agreements must be at least as good as the conditions in the relevant award. Award conditions for outworkers in the clothing, textile and footwear industry still apply even when there’s a registered agreement in place.

If an award or agreement doesn’t contain outworker terms, then the outworker gets the same conditions as any other employee.

Outworkers under the Textile and Clothing Award

Most outworkers work in the textile, clothing and footwear industry. They are covered by the Textile and Clothing Award.

In the textile, clothing and footwear industry, businesses can engage outworkers directly or enter an arrangement with outworkers to perform work outside of their business. Businesses have specific responsibilities and have to ensure their outworkers receive certain conditions.

Outworkers in the textile, clothing and footwear industry work from a place not usually considered a business premises, such as their home or a residential garage. Their work typically involves:

  • making clothing, bags or footwear
  • cutting, sewing, or finishing work, such as embroidery or sewing tags onto apparel
  • manufacturing buttons and textiles.

An outworker in the textile, clothing and footwear industry can be an employee or a contractor. Both employee and contractor outworkers in this industry are considered to be employees for most protections under the Fair Work Act.

Principals under the Textile and Clothing Award

Outworkers in the textile, clothing and footwear industry are engaged by a principal.

A principal can be an employer, or a person or business that arranges work for the outworker - called an outworker entity.

Principals who engage outworkers should be aware of their responsibilities and obligations.

A principal must be registered by a Board of Reference.

Outworker rules and obligations under the Fair Work Act and the Textile and Clothing Award need to be considered together with any state or territory laws that apply.

Board of Reference

Businesses have to be registered with a Board of Reference before engaging outworkers. Once registered, a registration number will be given to the business. Read more in our Library article - Board of Reference in the Textile and Clothing Award.

This number has to be included on work records and in written agreements with outworkers.

Minimum pay and conditions under the Textile and Clothing Award

The Textile and Clothing Award is a legal document that sets out wages and other conditions for outworkers. It applies even when there’s a registered agreement in place that covers the outworker.

Schedule F of the Textile and Clothing Award provides the minimum pay and conditions for outworkers. Outworkers need to:

  • be engaged on a full-time or regular part-time basis
  • receive at least the minimum award pay rate for their appropriate classification, even if they’re a pieceworker
  • get overtime, certain allowances and penalties
  • get the minimum entitlements in the National Employment Standards.

Outworkers are paid by the minute, which is equal to 1/2280 of the weekly rate.

Part-time employees are entitled to work at least 15 hours per week. This can be reduced to 10 hours per week with the agreement of the relevant union in the employee’s state or territory.

Entitlements in the Textile and Clothing Award apply to all outworkers, except for the list of excluded provisions that are listed in clause F.5.8. The excluded clauses include entitlements that are already in Schedule F or are specific to working in a usual workplace environment such as in a factory or warehouse. These include:

  • hours of work
  • when overtime applies
  • payment of wages
  • rest breaks
  • certain allowances.

For a full list of what does not apply, refer to clause F.5.8 of the Textile and Clothing Award.

Information outworkers must be given under the Textile and Clothing Award

Written agreements

The principal and outworker have to make a written agreement before any new arrangements start. The agreement has to be:

  • clear
  • simple
  • in a language that the outworker understands.

The agreement has to say whether work will be on a full-time or part-time basis.

If the outworker is part-time, the agreement must also include information about:

  • the agreed number of hours of work each week,
  • whether the hours will be averaged over a specific period, which can be up to 4 weeks.

The principal has to give the outworker a copy of the agreement and allow them time to read and understand the terms before they sign it.

The copies kept by the business must be in English.

Work records

Employees keeping records

Although employers are required to keep work records, employees should also keep their own records every time they receive work.

Refer to schedule F in the Textile and Clothing Award for more information.

The principal has to make a written work record for the worker, and give them a copy, before they start.

This record must contain information including:

  • the principal’s name, address and ABN, ACN or registered business number
  • the outworker’s name and address
  • the address where work will be performed
  • the time and date for starting and finishing the work, including delivery and pick up times
  • a description of the work required and the garments, articles or material to be worked on (including diagrams, where available, and details of the type of article, seam and fabric, and how it’s to be made)
  • the number of garments, articles or materials of each type
  • details of the time standard used to decide how much time is needed for work on each item. The time requirement must be fair and reasonable and provide:
    • more time for work to be performed than the time standard set for comparable work in a workshop or factory
    • reasonable additional time to perform related tasks such as bundling and unbundling, sorting and packing
  • the price to be paid for each garment, article or material completed
  • the number of working hours to complete the work
  • the number of hours or days within the ordinary working week needed to complete the work
  • the total amount to be paid to the outworker.

The full list of work record requirements can be found in clause F.3.2 of the Textile and Clothing award.

Schedule F

An outworker in the textile, clothing and footwear industry has to be given a copy of Schedule F of the Textile and Clothing Award by their principal or employer.

This information must be in a language that the outworker understands.

Schedule F includes an information sheet that sets out some of the entitlements an outworker has to get, including:

  • pay rates
  • hours of work
  • leave and public holidays.

Tools and supplies

All materials, trimming and sewing threads that are required for an outworker to do their work have to be provided by the principal. These need to be delivered to, and collected from, the outworker at no cost to the outworker.

Engaging outworkers in a business

When engaging outworkers in the textile, clothing and footwear industry, businesses have to:

  • register with the Board of Reference
  • provide them with required information
  • provide them with at least the minimum conditions
  • keep written work records
  • provide them with a written agreement.

Supply chain management

Businesses may have contracts with multiple suppliers who make the goods they sell. If these suppliers engage outworkers and do not pay them correctly, the business may be held responsible for the unpaid wages.

Tools and resources