East Labour Hire - Servicing Sydney

Should you be Hiring Contractors in 2016?

As an employer, there are certain laws and regulations you must meet before you hire a contractor. You cannot just assign an individual as a contractor, to avoid your legal obligations. Government rules dictate whether someone is an employee or an independent contractor. Checking with your solicitor is the best place to start to cover yourself.

YES to contractors!

· It gives you flexibility in staffing jobs

You can hire contractors only when you need them. You can expand and contract your workforce in fluctuating workloads.

· More efficient job completion

Contractors bring with them expertise and motivation to complete the work that they are contracted to do without being distracted by company politics and ad hoc work disruptions.

· A contractor requires less paperwork and obligations

Once a contract is signed, contractors are responsible for their own PAYG, superannuation, workers compensation and employee rights. They will generate invoices to your company after completion of the task, which you are obliged to pay according to the contract.

· A contractor can reduce the risk of the job

The contractor is responsible for the commercial risk of the contract and is legally liable for the work conducted.

· There is a definitive job that needs completing

To hire and meet legal obligations, contractors can be hired to complete a definitive work scope over a certain timeframe. If the contract permits, a contractor can sub contract or hire a third party to complete the job.

· The job requires equipment that you do not have

A contractor provides their own equipment to complete the job. The equipment is their responsibility in its use and its maintainence. If your project requires expensive equipment that your company does not have or the job does not warrant purchasing this equipment, than a contractor is a great option.

NO to contractors!

· Contractors can be more expensive

The cost of a contractor can be more than an employee in the long term, so forward thinking about the project at hand and projects in the pipeline, may warrant you hiring an employee.

· Client relationship

Your clients may not like the contractors working on their project. Always ensure your client relationship comes first because without good clients you have no business. However, if you have professional and efficient contractors, than this should not be an issue.

· Building a Team

It is hard to build a team that is filled with contractors. Team building is usually the domain of employees, so if you are trying to grow your business, employees become a very valuable asset.

Contractors can be a great solution to a short-term problem, however, you need to look at your business in the long term if hiring employees or contractors is the better option.