MLM Intel’s Intro to MLM, Part 4: Employment Status Loophole

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In my last post, we looked at a case study of a cosmetics MLM operating in Australia, which is being rather difficult in how it provides (or rather doesn’t provide) refunds and guarantees.

And finally, here it is — I know you’ve been waiting patiently for it!

INDEPENDENT DISTRIBUTOR: EMPLOYMENT STATUS LOOPHOLE

An ‘Independent Distributor’ (ID) is neither a retailer nor a manufacturer. This is where additional risks have been identified with the employment status of ‘Independent Contractors’ (ICs) which I seek to address in upcoming posts. For the purposes of uniformity and ease of understanding for this post only, let’s assume that for legal, employment, taxation and superannuation purposes, an ‘Independent Distributor’ is in fact an Independent Contractor by Australian definitions.

Independent contractors in Australia are also governed by The Independent Contractors Act 2006 and the Fair Work Act 2009 — these two acts govern and protect the rights, responsibilities and guidelines of people employed within these spaces.

Independent contracting work is not illegal by any means, but it does have other obligations in relation to taxation, superannuation, fair and safe work that regular employees may already have covered for them in their employment contracts.

Get the full story about the differences between regular employees, contractors, and distributors over at MLM Intel’s blog.


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