G'day Everyone, This mostly relates to the laws in Australia.... but many countries have similar laws.
There is a legal case happening now in Western Australia where the plaintiffs are suing a number of people who had involvement with a glider which crashed. It looks like the solicitors are suing the bloke who signed out the maintenance. This email is about the different laws which apply to employees and contractors. If you are an employee of an aircraft owner you mostly avoid liability under the vicarious liability laws. If you are a contractor, if something goes wrong, you can be personally sued and you must have your own insurance. I am *NOT* a lawyer so this is just a discussion topic I only ever do work for other people on their aircraft as an employee. It is not actually very difficult to set up this sort of arrangement. In Australia, it is a few forms to start with and a couple after the 30 June tax year ends. A lot of people set it all up for their household cleaners and gardeners etc. See https://www.ato.gov.au/Business/PAYG-withholding/In-detail/Withholding-from-payments-to-household-employees/ Everyone needs to be familiar with the legal definitions of a Contractor and Employee. See https://www.ato.gov.au/calculators-and-tools/employee-or-contractor/ We also need to understand the legal liabilities of each category. Here is a meaty but good explanation https://www.lawteacher.net/free-law-essays/employment-law/what-is-an-employee-and-independent-contractor-employment-law-essay.php The employer doesn't necessarily need a Workers Compensation Policy....fortunately in NSW (and some other states in Australia) there is automatic free Workers Compensation for workers who are engaged by small time employers who pay less than $7,500 per year in wages. See https://www.sira.nsw.gov.au/insurance-coverage/workers-compensation-insurance/who-is-exempt If you are doing work for anyone, please familiarise yourselves with all this. It may mean you don't end up in Court one day! regards Rob Rob Thompson 0429 493 828
