Policy: Individual Contractors
Purpose
To inform staff of the University’s policy on engaging individual contractors to provide services to the University.
Overview
This document provides the guiding principles associated with the engagement of external contractors employed to provide services by the University.
Scope
This policy applies across the University.
Policy Statement
Introduction
- The legal requirements associated with engaging contractors are significantly different to the legal requirements arising from engaging employees. It is important that prior to entering into a relationship with an individual contractor, the ANU confirms the status of the proposed relationship, and identifies and manages the legal issues and risks arising.
- It is the University’s preference to minimise dealings with individual contractors (i.e. individual service providers paid through accounts payable), as entering into a contract for services with an individual can generate significant risk exposures for both the individual and the University.
- Individual contractors often do not have their own insurances (i.e. public liability and professional indemnity insurances), and are not personally covered by the University’s insurance program.
- Depending on the specific circumstances, the individual may be viewed by the relevant government authorities as an employee for taxation and/or superannuation and/or workers compensation purposes, irrespective of the fact that the University has decided to treat them as a contractor.
Principles
- The ANU only engages an individual in a contract for services when there is no viable alternative provider/method of engagement.
- It is the responsibility of the delegate to:
- confirm the status of the individual as a contractor (as opposed to an employee); and
- ensure that, where required by the procedure, a written contract is entered into prior to the individual performing any work for the University.
Delegations relevant to this policy
- 000220: Finance Delegation: Purchase goods and services (including the signing of related purchasing contracts) within budget limit in one transaction or series of transactions (excluding GST).
