2.1.4.4 Work arrangements

A range of occupations have been specifically mentioned in the legislation for certain work arrangements. Certain conditions must exist for them to be treated as workers.

Domestic servants

They must satisfy the normal requirements of the legislation to be regarded as workers.

Taxi drivers/passenger vehicle drivers

A person engaged in driving a vehicle used for carrying passengers for reward is deemed to be working under a contract of service with an employer if the following conditions are met:

• the vehicle is used under a contract of bailment, that is, the employer (bailor) who owns the vehicle, entrusts it to the worker (bailee) on condition that it is restored to the employer at agreed times

  For example The arrangement between a taxi driver and the taxi owner

• the worker is required to pay for the use of the vehicle. This can be any of the following:
• a fixed amount
• an amount proportionate to mileage or receipts

The bailor is deemed to be the employer.

The amount received by the deemed worker for carrying passengers, less any amount paid/payable for the vehicle's use, is deemed to be remuneration. The PIAWE is calculated on the same basis as the remuneration over the 12 months or lesser period of the contract of bailment.

Religious bodies and organisations

People working for religious organisations may be workers within the normal meaning.

A religious body or organisation can request the Governor in Council declare people within a specified class, who are not otherwise workers within the meaning of the legislation, to be deemed workers of that body or organisation.

The Governor in Council publishes an Order in the Government Gazette declaring them to be deemed workers.

For example Pastors of the Lutheran Church of Australia engaged in Ministries in Victoria have been declared workers of the Lutheran Church of Australia from 1 February 1995. Persons appointed as ministers of the Uniting Church in Australia and engaged in Ministries in the State of Victoria have been declared workers of the Uniting Church in Australia, Synod of Victoria and Tasmania from 7 October 2004.

See Victorian Government Gazette: G41 - 7 October 2004 | G24 - 16 June 2016 | G36 - 8 September 2016

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Places of pick-up

A place of pick-up is a pre-arranged place where people customarily attend to be selected and engaged for employment.

Deemed workers under a contract of service

While at a place of pick-up, any such persons are deemed to be working under a contract of service.

Deemed employer

The employer who last employed that person in that type of employment is deemed to be the employer.

Temporary staff

People can be engaged by employment agencies in ‘on-hiring’ contracts to work for third parties under that contract on a permanent or temporary basis.

Contract of service - between worker and agency

If there is a contract of service between the worker and the agency, the person is always a worker of the employment agency for work undertaken for third parties under that contract.

Contract for services - between agency and third party

If an employment agency contracts with a third party for a temporary to work for the third party, Agents need to determine whether the temporary employee is one of the following:

• working for the employment agency under a deemed contract of service
• a deemed worker as an independent contractor
• deemed to be a worker under a relevant contract.

See: Contractors

Contract between temporary and third party

If a contract arises between the third party (end user) and the temporary employee undertaking the work, the third party may be deemed the employer of the person if the person is a worker, contractor or independent contractor.

See: Define a worker | Contractors

Combined employment arrangements

It is not unusual for employment agencies to enter into different arrangements with people, as outlined above, at the same time.

Agents must examine full details of the contracts to make a decision.

For example As commission Agent for an end-user (the employer) and as employer of the temporary staff.

Owner drivers

From 1 July 2011 owner drivers operating as sole traders or partnerships (and often referred to as 'natural persons') are deemed workers of their hirer (the courier or transport company they work for) unless WorkSafe determines they are carrying on an independent business or trade.

Incorporated owner drivers are not deemed workers of their hirer and are responsible for their own WorkCover insurance.

WorkSafe’s Owner Driver Guideline sets out when WorkSafe considers an unincorporated owner driver to be running their own independent business.

See: Owner Driver Guidelines

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