HR Contractor FAQs

Employees are permanent workers within a company, either in a part-time or full-time capacity. They have a set role, with no end date. 

On the other hand, contractors are brought in for a fixed period of time, to address a specific need or assist with a project within a company. This timeframe can range from one day to months, or even years.

HSE contractors can help organisations in a number of ways, including:

• Provide extra HR help during busy periods.
• Help you to scale up or down capacity at speed.
• Cover for leaves of absence e.g. maternity, carers, or sick leave. 
• Plug capability gaps within your team.
• Undertake specialist HR projects. 
• Provide access to new methodologies & innovative HR thinking. 
• Back-fill a role, to free up your team for other work. 
• ‘Try before you buy’ with a contract-to-hire arrangements.

‘Pay as you go’ (timesheet) contractors are the ideal for flexible, short and medium term assignments.

A Fixed Term contractor is best for medium to long-term assignements lasting a set period of time. 

Alternatively, 'Pay as you go' (timesheet) contractors can be used for any length of contract and can be scaled up or down to meet you needs.

A Fixed Term contractor is best for medium to long-term assignements lasting a set period of time. 

Alternatively, 'Pay as you go' (timesheet) contractors can be used for any length of contract and can be scaled up or down to meet you needs.

Before a contractor can begin an assignment we require a number of essential documents. These include:

• Signed Master Agreement (see bottom of this page for an example);
• Confirmed payment terms; and 
• A completed WHS risk assessment. 

The sooner these are provided, the sooner your contractor can start.

‘Pay as you go’ contractors provide temporary HR support. Contract periods are flexible (and are typically suited to short and medium term assignments). They can be scaled up or down, depending on your needs.

Fees are agreed prior to commencement and vary depending on the skills required and the demands of the assignment. 

A 'pay as you go' contractor remains on our payroll and charged out to you (using an agreed hourly or daily rate).

Invoices are produced weekly, based on the actual hours or days worked by the contractor as evidenced by an authorised timesheet.

We are responsible for a 'pay as you go' (timesheet) contractor’s superannuation, workers compensation insurance, professional indemnity insurance, payroll tax, payroll and administrative costs. 

No. 'Pay as you go' (timesheet) contractors do not get paid holidays or sick leave. You only pay for the actual hours worked.

PAYG contractors are covered by The Next Step's professional indemnity, public liability and workers compensation insurances.

If a contractor has an ABN arrangment, we will confirm their own insurances are current prior to them commencing the assignment. 

Safety is of upmost importance to us. We take measures to ensure that our contractors work in a safe environment.

All 'pay as you go' (timesheet) contractors are required to complete a work health and safety induction during their first week.

We continue to work with all parties to monitor and resolve any safety concerns.

Yes. We understand that your requirments may change from time to time and assignment periods can be extended (depending on contractor availability). You can either extend a 'pay as you go' arrangement, or alternatively move them acorss to a fixed term contract. 

In this instance, a new agreement will need to be signed and a buy-out fee will apply. This is 18% of the fixed annual remuneration + GST, pro-rated for the duration of the contract (a minimum fee of $5,000 + GST applies).

Yes, we're always happy if we can make an introduction that works for the long-term.

If a 'pay as you go' (timesheet) contractor transfers into your employment as a result of accepting a permanent position then the buy-out fee owing will be 18% of the fixed annual remuneration + GST.

Fixed term contractors are often employed to cover a leave of absence e.g. maternity leave, or to complete a special project.  They offer stability without adding to permanent headcount.

A Fixed Term contractor is employed and pay-rolled directly by you for an agreed set period. 

During the assignment period you must pay your Fixed Term contractor the standard benefits and conditions offered to all your employees e.g. paid public holidays, sick leave, insurance, workers entitlements, payroll tax and superannuation.

Fees are agreed in writing prior to the assignment commencing and will vary depending on various factors including the skills required, the duration and demands of the assignment. 

Fixed Term contracts are charged at 18% of annual remuneration + GST pro-rated for the duration of the contract period.  A minimum fee of $5,000 applies to each initial fixed-term contract placement.

Yes. Fixed Term contractors are entitled to the same benefits and conditions offered to all your employees. This includes pro-rated leave entitlements, insurance, workers entitlements, payroll tax and superannuation.

Fixed term contractors are employed directly by you and must be covered by your own insurances and workers compensation.

Yes. We understand requirements may change from time to time and that a contract may need to be extended (dependent on contractor availability).

Each time a Fixed Term contract is extended, an additional fee is calculated at 18% of annual renumeration, pro-rated for the duration of the extension period (to a maximum total contract duration of 12 months). There is no minimum fee associated with the extension of an existing contractor. 

Alternatively, you may switch to a more flexible  'Pay as you go' (timesheet) arrangement.

Yes. We enjoy helping people find their people and are glad when a temporary arrangements morph into long-term commitments.

In the event that a Fixed Term contractor is offered and accepts a permanent position with you, then a buy-out final fee will be due and calculated at 18% of the fixed annual remuneration offered for the permanent position less any fee(s) already paid to us for this contractor period.