Policy: Individual Contractors/Sole Traders

Purpose

To inform staff of the University’s policy on engaging Individual Contractors/Sole Traders to provide services to the University.

Overview

This document sets out the University’s position on the engagement of individuals as contractors to provide services to the University and should be read with the associated procedure.

Scope

This policy applies across the University, including to:

External individual contractors and sole traders; and
Staff, Students or VAHAs who are engaged as contractors to perform work outside their prescribed ANU duties.

Policy Statement

Introduction

The legal requirements associated with engaging Individual Contractors/Sole Traders are significantly different to the legal requirements arising from engaging employees. It is important that prior to entering a relationship with an Individual Contractor/Sole Trader, the ANU confirms the status of the proposed relationship, identifies and manages the legal issues and risks arising.
The University minimises commercial dealings with Individual Contractors/Sole Traders (i.e. individual service providers paid through accounts payable), because entering into a contract for services with an individual can generate significant risk exposures for both the individual and the University.
Individual Contractors/Sole Traders 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 engagement may be treated by the relevant government authorities as employment, including for taxation, superannuation, 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 on a contract for services when there is no viable alternative provider or method of engagement.
It is the responsibility of the delegate to:
1. confirm the status of the individual as a contractor (as opposed to an employee); and
2. Ensure that the University Legal Office provides (or endorses) the relevant governing documents for the engagement.
3. A written contract must be finalised before any work begins or payment is approved for the individual performing services for the University.

Information	Printable version (PDF)
Title	Individual contractors
Document Type	Policy
Document Number	ANUP_000419
Version
Purpose	To inform staff of the University's stance on engaging individual contractors to provide services to the University
Audience	Staff
Category	Administrative
Topic/ SubTopic	Finance

Effective Date	15 May 2025
Next Review Date	15 May 2030

Responsible Officer:	Chief Financial Officer
Approved By:	Vice-Chancellor
Contact Area	Finance and Business Services
Authority:
Delegations	000220
Information generated and received by ANU staff in the course of conducting business on behalf of ANU is a record and should be captured by an authorised recordkeeping system. To learn more about University records and recordkeeping practice at ANU, see ANU recordkeeping and Policy: Records and archives management.

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