In a large training organisation, situated in Adelaide, Fred has been employed as a tutor for 15 hours a week (tutoring students in Employment Law). Fred is a student of the organisation and keen to get teaching experience. His employment contract states that he is an independent contractor. The Manager who created the contract asked Fred for his ABN. Fred is paid fortnightly by the training organisation based on the timesheets for the tutoring work he undertook for the previous fortnight. The training organisation takes tax out prior to paying Fred. Fred uses the organisation’s computer and overhead projector when teaching but prepares for classes at his own home using his own computer. He uses the training organisation’s written resources to prepare for the class.
No other resources are used. If Fred is unable to attend the class (eg due to sickness) he does not get paid for that class and is required to notify the supervisor. He could not arrange a replacement. He does not receive leave. He is told which classes to teach and is asked to mark all assignments within one week. His supervisor also gives directions about the topic for each week and how to run the class. As part of the contract a clause states that Fred agrees ‘not to work for a competitor training organisation within 12 months of completing work at the training organisation any where in the world’. The contract has come to your attention. Write an informal report to your manager highlighting any concerns (and legal consequences) you have about this contract.