(1) This procedure supports the Finance Management Policy and the Finance Procedure - Procurement by outlining the processes to determine the nature of the engagement of a contractor or a consultant and to: (2) This procedure applies to the engagement of individuals who perform a range of specialised services, which may include but not be limited to casual lecturing, guest lecturers, guest speakers, presenters, workshop coordinators and others, which by their very nature are difficult to categorise. (3) This procedure does not apply to engagements entered into with service or labour hire organisations (employment agencies). (4) Refer to the Finance Management Policy. (5) Charles Sturt University (the University) regularly engages people and entities to provide a range of services on a temporary basis when those services are not generally available within the University. In some circumstances, it may not be clear whether the arrangement should be one of employer/employee, or whether the person/s may be engaged as a consultant or an independent contractor. (6) The distinction between employees, contractors and consultants is extremely important in the determination of the University's liabilities under a range of legislation, including pay-as-you-go (PAYG) tax withholding instalments, workers compensation insurance, payroll tax and superannuation obligations. All staff involved in the procurement of services from contractors and consultants must ensure that the status of the engagement is determined and specified before any engagement undertaking is given. (7) A staff member planning to procure services from a contractor or consultant must assess the nature of the engagement to ensure it is not that of an employee by considering: (8) Where an internal assessment determines that: (9) The Fair Work Ombudsman provides a whole of relationship test to provide an answer whether the worker is an employee or an independent contractor, depending on the circumstances of each case. (10) Before engaging a contractor or consultant, the whole of relationship test must be completed, and: (11) The courts and the Fair Work Ombudsman will not hesitate to declare an engagement as an employee if the facts of the case clearly indicate it, irrespective of the decision of the University, so each case must be investigated carefully based on the specific circumstances of each case. (12) Approval to engage a consultant or independent contractor is subject to budget availability and should only be given where the budget centre manager is satisfied that the work is essential and cannot be performed internally by an employee of the University. (13) The Finance Management Policy and Finance Procedure - Procurement must be followed in sourcing and choosing an appropriate contractor or consultant. (14) A standard University agreement (downloaded from Legal Services) signed by both parties should generally be used where the consultancy/contract is any independent contractor arrangement with the University. (15) Variations to the standard University agreement must be submitted to Legal Services, prior to procurement and engagement, for review and endorsement. (16) A signed copy of the final agreement is to be emailed to Legal Services at legal@csu.edu.au. (17) An independent contractor/consultant engaged to provide services to Charles Sturt University must: (18) Effective management of consultants/contractors and scrutiny and evaluation of their work is essential to ensure that the objectives of the engagement are met. (19) All consultancies must be reported as part of the University's annual report. Budget centre managers must ensure that the correct account code is used for all costs associated with a consultancy to facilitate the annual reporting requirement. (Note that a separate account code is used to distinguish contractors from consultants). (20) The Finance Procedure - Procurement must be followed for engaging a contractor or consultant. Either a purchase requisition or a contract will need to be completed prior to the engagement of an independent contractor or consultant. (21) A cost and time estimate should be prepared and the availability of funds confirmed before seeking approval to invite bids from consultants/contractors. (22) All contracts for procurement must be administered through the Director, Financial Services and, unless they are in the form of a standard form agreement (precedent) previously approved by Legal Services, referred to Legal Services for review. (23) If it is determined that the worker is an independent contractor, a copy of the results of the Fair Work Ombudsman test supporting that decision must be attached to the purchase requisition or contract. (24) Approval to engage a consultant or contractor is subject to the delegation limits specified in Delegation Schedule C - Finance. (25) The standard form of agreement for an independent contractor or consultant can be used for the engagement contract. (26) Nil. (27) Refer to Finance Schedule - Consultants and contractors internal assessment table 1 for definitions of consultant, contractor and employee as used in this procedure.Finance Procedure - Contractors and Consultants
Section 1 - Purpose
Scope
Section 2 - Policy
Section 3 - Procedures
Determining engagement status
Internal assessment
External assessment - whole of relationship test
Engagement approvals and contracts
Engagement processes
Section 4 - Guidelines
Section 5 - Glossary
Section 6 - Document context
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Compliance drivers
N/A
Review requirements
As per the Policy Framework Policy.
Document class
Management