Understanding regulated workers

Some independent contractors are ‘regulated workers’.

Eligible businesses and organisations can apply to the Fair Work Commission to set minimum standards for these workers.

On this page:

Who are regulated workers?

Some independent contractors (contractors) have special laws that apply to them. These contractors are called regulated workers.

There are 2 types of regulated workers:

To be considered a regulated worker, a worker must:

  • be a party to a services contract as an individual or:
    • a director (or family member of a director) of a body corporate that is a party to a services contract
    • a trustee of a trust in which one trustee is a party (in that capacity) to a services contract 
    • a partner in a partnership in which one partner is a party (in that capacity) to a services contract
  • perform all (or a majority) of the work under the services contract
  • not perform any work under the services contract as an employee.

The services contract the regulated worker is party to must have a constitutional connection. For example, the services contract could be between the regulated worker and a constitutional corporation.

An employee-like worker must also have 2 or more of the following characteristics:

  • low bargaining power in negotiations relating to the services contract
  • receives the same or less pay than an employee would get
  • little authority over how they perform work.

Some employee-like workers perform work in the road transport industry. They’re known as road transport employee-like workers.

Some road transport industry employee-like workers and regulated road transport contractors work in road transport contractual chains.

Learn more in Key terms.

Working out if you're a regulated worker

We (the Fair Work Ombudsman) can’t decide if you’re a regulated worker.

We can give you information and advice on minimum workplace rights and responsibilities. This includes on these new laws.

If you need confirmation that you’re a regulated worker, you’ll need legal advice. Find out about getting legal advice at Legal help.

Key terms

There are some key terms and definitions that apply to regulated workers. These include what kind of characteristics they have and what industry they work in.

These definitions can help you understand the new terms related to regulated workers. They’re not legal definitions.

TermDefinition
constitutional connection

A contract for services has a constitutional connection if one of the following applies:

  • at least one party is:
  • the work will be all done or mainly done in a territory in Australia
  • the contract was entered into in a territory in Australia
  • at least one of the parties is a person who is a resident in, or a company that has its principal place of business in, a territory in Australia, or
  • the work is done in the course of constitutional trade or commerce.
collective agreementAn agreement registered with the Fair Work Commission that sets out minimum terms and conditions for regulated workers.
digital labour platformAn app or website that allows for a person to provide labour or services to someone else. The operator of the platform can directly engage contractors or act as an intermediary for customers to interact with contractors.
employee-like worker

An independent contractor who:

  • is a party to a services contract (other than as a principal) either as an individual or:
    • a director (or family member of a director) of a body corporate that is a party to a services contract
    • a trustee of a trust in which one trustee is a party (in that capacity) to a services contract 
    • a partner in a partnership in which one partner is a party (in that capacity) to a services contract
  • performs all or most of the work under the services contract
  • performs work under a services contract through or by means of digital labour platform (for example, a website or app) or under a services contract that was arranged or facilitated through or by means of a digital labour platform
  • doesn't perform work under the services contract as an employee
  • has 2 or more of the following:
    • low bargaining power in negotiations relating to the services contract
    • receives the same or less pay than an employee would get
    • little authority over how they perform work.
regulated business

These are:

  • businesses that hire contractors in the road transport industry, or
  • digital platform operators who enter into or facilitate a services contract under which employee-like workers perform work.
regulated workerA person who is an employee-like worker or a regulated road transport contractor.
road transport industry

An industry that covers:

  • the road transport and distribution industry (excluding the transport of livestock)
  • long distance operations in the private road transport industry (excluding the transport of livestock)
  • the waste management industry
  • the cash in transit industry
  • the passenger vehicle transportation industry, but not including electric tramway, monorail or light rail 

as defined by their respective awards.

regulated road transport contractor

An independent contractor who:

  • is a party to a services contract (other than as a principal) either as an individual or:
    • a director (or family member of a director) of a body corporate that is a party to a services contract
    • a trustee of a trust in which one trustee is a party (in that capacity) to a services contract 
    • a partner in a partnership in which one partner is a party (in that capacity) to a services contract
  • performs all or most of the work under the services contract
  • works in the road transport industry
  • doesn't perform work under the services contract as an employee
  • isn't an employee-like worker.
road transport employee-like workerAn employee-like worker who performs work in the road transport industry.
road transport contractual chain

A chain or series of contracts or arrangements where:

  • work is performed for a party to the first contract in the chain or series by a regulated road transport contractor or a road transport employee-like worker under a services contract or by an employee
  • at least one party to the first contract or arrangement is a constitutional corporation.
services contract

A contract for services that:

  • relates to the performance of work under the contract by an individual
  • has the required constitutional connection (for example, a constitutional corporation is a party to the services contract).

Minimum standards

The Fair Work Commission (the Commission) has the power to:

  • make minimum standards orders and guidelines for regulated workers
  • make road transport contractual chain orders and guidelines
  • register collective agreements that apply to regulated workers and regulated businesses.

The Commission is the national workplace relations tribunal and registered organisations regulator.

Making or applying for minimum standards

The Commission can make minimum standards orders and guidelines for regulated workers:

  • on its own initiative, or
  • by application

Applications can be made by:

  • a regulated business
  • an organisation representing regulated workers or regulated businesses
  • the Minister for Employment and Workplace Relations.

An individual regulated worker can't make an application.

Find out more from our pages on:

You can also learn more about the process on the Commission’s website: Regulated worker and contractual chain standards.

Help available

There is help available for regulated workers, including from us and other government bodies. Visit Other help for regulated workers.

Source reference: Fair Work Act Division 3A, Part 1-2, Chapter 1 and Chapter 3A

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