Resources & Compliance

For motel owners, getting the structure of relief management right has never been more important—or more complex. This page outlines the key considerations and how I can help you stay compliant while running a smooth operation.

The Grey Area: Contractor vs PAYG Employee

Under Australian workplace law, there is no single test that determines whether someone is a contractor or an employee. Since the August 2024 amendments to the Fair Work Act 2009, the “Whole of Relationship” test applies. This means a court or tribunal will look at the practical reality of the working arrangement—not just what the contract says.

Factors that point toward employment:

• Control: The business directs how, when, and where work is done
• Integration: The person is integral to the core business, not operating a separate enterprise
• Delegation: The person cannot send a substitute without strict restrictions
• Equipment: The business provides all tools, premises, and systems
• Payment: Paid by the hour or a weekly rate that mirrors a wage
• Leave: Receives paid time off or sick leave

Factors that support contractor status:

• Operates their own ABN and business structure
• Provides their own tools and equipment
• Can delegate or subcontract (with reasonable approval)
• Has discretion over how outcomes are achieved
• Charges for outcomes, not time worked
• Works for multiple clients (genuine business)

The Changing Landscape: Relief Managers and the Fair Work Act

Over the past few years, there has been a significant increase in awareness among relief managers about their potential entitlements. Many are now:

• Reviewing agreements against the Fair Work Act before signing
• Seeking advice from the Fair Work Ombudsman
• Comparing their arrangements to award rates and employee entitlements
• Documenting control, hours, and direction from owners

If a manager later brings a claim for unpaid entitlements (super, leave, overtime, etc.), the cost to an owner can be significant—often tens of thousands of dollars, plus legal fees and potential penalties.

How I Can Help

With 25+ years in motel and hotel management, I provide practical, industry-specific support to help you get the structure right from the start.

1. Relief Management Services Agreement (Contractor Template)

A comprehensive 51-clause agreement drafted specifically for the motel industry. It includes:

• Outcome-based control language (aligned with the Whole of Relationship test)
• Substitution rights with reasonable approval
• Clear disclaimers on superannuation and workers compensation risks
• GST, ABN, and invoicing requirements
• Insurance guidance

2. Contractor vs Employee Assessment

Not sure whether your arrangement should be PAYG or contract? I can review your situation and provide a clear, practical recommendation based on current legislation.

3. Pre-Engagement Review

If you have candidates asking questions about their status or entitlements before signing, I can help you respond appropriately and, if needed, recommend whether to proceed or withdraw.

4. Urgent Risk Advice

If a current arrangement is showing signs of trouble—such as a manager raising Fair Work concerns—I can advise on how to manage the situation and minimise exposure.