Unfair Contract Term (Independent Contractors)
A term in an independent contractor's service contract that is deemed unfair by the FWC, particularly if it relates to workplace relations matters and the contractor earns below a high-income threshold.
Definition
The Act introduces a new jurisdiction for the Fair Work Commission (FWC) to review and vary or set aside 'unfair contract terms' in service contracts for independent contractors. This applies to contractors earning below a specified high-income threshold (currently $175,000 per annum). A term is considered unfair if, among other factors, there is a significant imbalance in the parties' rights and obligations, it is not reasonably necessary to protect legitimate interests, or it imposes a harsh, unjust, or unreasonable requirement. The FWC can intervene if the term relates to 'workplace relations matters' such as remuneration, hours of work, or termination, providing a more accessible remedy for vulnerable contractors.