Many GPs in
Australia are occupied as an employee or contractor in a private medical
practice. This includes Part-time and locum work arrangements. In Australia it
is common and appropriate to sign either an employer/employee contract or
service agreement when engaging with a practice.
Employee
A Doctor is considered
an Employee if they:
• Are paid for the time worked
• Receive paid leave – for example,
sick, annual or recreation, or long service leave
• Are not responsible for providing the
materials or equipment required to do their job
• Must perform the duties of their
position
• Agree to provide their personal
services
• Work to hours set by an agreement or
award
• Are recognised as part and parcel of
the payer’s business
• Take no commercial risks and cannot
make a profit or loss from the work performed.
As Employees you
have many advantages, including the ability to focus on your clinical work.
This is particularly appropriate for doctors who wish to have flexibility in
their work life and do not want to accept the responsibilities and financial
risks.
Independent Contractor
Independent
contractors run their own business, negotiate their own working arrangements
and fees. Doctors are generally considered an independent contractor if they:
• are paid for results achieved
• provide all or most of the necessary
materials and equipment to complete the work.
• are free to delegate work to other
entities
• have freedom in the way the work is
done
• provide services to the general
public and other businesses
• are free to accept or refuse work
• are in a position to make a profit or
loss.
Contracts
An employment
contract is simply what identifies the working relationship, rights and
responsibilities, and expectations between the employee/independent contractor
and the employer.
The contract/agreement
is important for both parties as it helps understand what involves in their
business relationship. It similarly prevents any misunderstandings or risks
associated with signing a contract.
If you are a
GP about to sign an employment contract, the RACGP Employee guide suggests that the contract
should include certain key details.
Contracts for Employees
The employment
contract for employee should include details of the following:
• Salary
–
fixed salary or percentage of billings
–
frequency of billing cycles
–
percentage of PIP
–
percentage of PNIP
–
SIP
–
any other allowances or expenses
•
Description of the job, duties
and responsibilities
•
A commencement date and type of
employment (full time, part time, casual, other)
•
Location of employment, including
on-call and after-hours requirements to attend
patients’ homes, hospitals, and workplaces
•
Hours of work or number of
sessions, patients per hour
•
Leave entitlements
–
annual leave
–
personal leave (sick leave, carers leave and compassionate leave)
–
long service leave
–
parental leave
–
study leave
–
sabbatical leave
•
Superannuation
•
Post employment restrictions (if
applicable)
•
Performance management
•
Renegotiation
•
Dispute resolution
•
Termination of employment
(including notice period)
Contracts for Independent Contractors
The employment contract for employee should include details of the
following:
•
Salary
– percentage of billings
– frequency of billing cycles
– payment method
– percentage of PIP
– percentage of PNIP
– SIP
– any other
allowances or expenses
•
Identification of the parties
(medical practice and independent contractor)
•
Commencement date and duration of
the contract
•
Hours of work and location of
work
•
Results to be achieved and
services to be performed
•
Insurance and professional indemnity
responsibilities
•
The terms of the contract
•
After hours work and on call
requirements
•
Provision of tools and equipment
necessary to undertake the work
•
Reporting arrangements
•
Confidentiality obligations
•
Intellectual property rights
•
A clear dispute resolution
process
•
Leave entitlements (unpaid)
– annual leave
– personal leave (sick leave, carers leave and compassionate leave)
– long service leave
– parental leave
– study leave
– sabbatical
leave
•
Termination of the contract
For more
details on contracts for Independent Contractors, see the Independent Contractors Essential
Handbook which is a simple guide to the rules and regulations and
the rights and obligations of the business.
If you need
further details or clarifications on employment conditions and contracts, including
work arrangements and income potential, our recruitment consultants are fully
capable to assist you. Simply drop an email to feed@medfutur.com.au with your questions or
contact details and we will get in touch with you.
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