IT Contracting Role - PAYG - Insurance Requirements?
Last edited 30/06/2019 - 10:49
Update: good result. The contracting company agreed to absorb the rate into my day rate.
Previously I have been working in IT in Prem full time roles as employee. I have been offered a 6 month role through a Recruitment Company they had advertised. There is no requirement for ABN or Pty Ltd they are paying PAYG and handling super. Believe it's called "Labour Hire"
They have offered a "package" which includes the ability to get their benefits (random membership discounts), Salary Packaging, weekly pay and the main thing is Professional Indemnity Insurance and Liability Insurance.
I will be contracted to 1 employer, 9-5 doing what ever work they direct me at the time. They supply all equipment. I will be paid by Recruitment Company. I have no paid leave entitlements + 2 weeks notice period.
I was not sure if I was required to provide my own insurance or I should be automatically covered. I can't get a 100% answer out of the company and I feel they might be selling it as a "package" and providing insurance that I don't need as it should already be provided. It is 1% of my gross wage and if I have to have it, I will get it (Or get it from another external company).
I just wanted to see if anyone else had any similar experience, I understand it would be clear cut if I had my own Pty Ltd but as it's PAYG and they are ticking all the other boxes as a employee not a contractor.
Not sure where to turn for impartial advice in this situation.
EDIT: it's 1.5%