INDEPENDENT CONTRACTORS ACT 2006 (NO. 162, 2006) - SECT 32 Continuation contracts and related continuation contracts

INDEPENDENT CONTRACTORS ACT 2006 (NO. 162, 2006) - SECT 32

Continuation contracts

             (1)  A services contract (the later contract ) is a continuation contract in relation to a pre‑reform commencement contract if:

                     (a)  the parties to the later contract are the same as the parties to the pre‑reform commencement contract; and

                     (b)  one or more of the following subparagraphs is satisfied in relation to the later contract:

                              (i)  the later contract is entered into pursuant to an option or similar right contained in the pre‑reform commencement contract, or contained in another contract that is a continuation contract in relation to the pre‑reform commencement contract;

                             (ii)  the contract period of the later contract immediately follows the contract period of the pre‑reform commencement contract;

                            (iii)  the contract period of the later contract immediately follows the contract period of another contract that is a continuation contract in relation to the pre‑reform commencement contract; and

                     (c)  the later contract relates to the performance of the same kind of work as the pre‑reform commencement contract.

Note 1:       See also subsection 35(7), under which a contract may be taken to be a continuation contract.

Note 2:       For how this section applies in a transfer of business situation, see section 36.

             (2)  For the purposes of subparagraphs (1)(b)(ii) and (iii), the contract period of a services contract is taken to immediately follow the contract period of another services contract even if those periods are interrupted by an interval, but only if that interval:

                     (a)  is consistent with a regular pattern of contracting between the parties to the contracts; or

                     (b)  is covered by regulations made for the purposes of this paragraph.

Related continuation contracts

             (3)  A services contract is a related continuation contract in relation to another services contract if:

                     (a)  the following subparagraphs are satisfied:

                              (i)  the other services contract is a pre‑reform commencement contract;

                             (ii)  the first‑mentioned services contract is a continuation contract in relation to the other contract; or

                     (b)  the 2 services contracts are continuation contracts in relation to the same pre‑reform commencement contract.