This level of support allows the physician to focus more fully on providing high-quality services to clients. The installation agreement states the following: When hiring an employee or collaborating with a contractor, it is important to have written contractual terms explaining the relationship. In addition, the contract must be formulated correctly. ”You can call something an independent contractor contract, but if it`s actually an employment commitment, the courts treat it as such,” Granata says. The most recent case of moffet v. Dental Corporation Pty Ltd [2019] FCA 344 involved a dentist acting as an independent contractor under a service contract. Under the service agreement, services were provided by the dentist at the dental clinic for a fee. There are many other personal and professional considerations that you should consider before entering into an installation agreement. You should also think carefully about the limitations and how they may affect future opportunities.

You must clearly document each agreement and both parties must agree to the terms. Installation contracts usually contain limitations. These may be for certain periods, distances or restriction of customer advertising. Restrictions of this type are often included to protect the day-to-day operations of the doctor`s office. They are also added to discourage practitioners from asking clients to move with them when they leave. These clauses are often formulated in the form of cascading or cascading clauses, for example: the medical industry often uses establishment agreements. Physicians give patients or customers facility agreements and use them under a corporate or medical center banner. The presence of these agreements usually indicates that the medical center provides the practitioner with a number of services, such as: An example is a dentist who has the opportunity to define his own working hours and working methods.

”This entrepreneur also has the ability to say, `Well, I`m going on vacation now and I`m not going to offer my services for a few weeks.` While a qualified dentist who needs a higher level of supervision and control is compatible with an employment relationship. ”Those who work with dentists to provide dental services in their practice usually have to consider whether they should hire under an employment contract, an independent contractor contract, or a service and installation agreement (and sometimes rarely licensing agreements). A Victorian dentist who has specialists who visit the practice says that instead of making regular contracts, these dentists work under a service contract. Here, the owner of the practice collects the fees on behalf of the clinician and charges him for the use of the facility. ”The fees they pay are based on a percentage of the total fees charged minus some specific sales costs, such as labor,” he says. This is an increasingly common agreement in which a management company provides clinicians, professionals and other sole proprietors with the use of the facilities and administration in exchange for a portion of the revenue. This is common in healthcare clinics, but is also observed in many other industries. In such cases, the application of Article 12(3) of the Law may have serious and unintended consequences for the operator of the installation. The physician had entered into an agreement with the medical clinic in which the practitioner provided his services to his clients from the clinic and the clinic provided administrative services and facilities to the practitioner. Fees paid by the physician`s clients were paid to the clinic on behalf of the practitioner. The practitioner then received part of his bills.

The remaining part was kept by the clinic to cover facilities, administration and equipment. This was done in accordance with the agreement between the clinic and the practitioner. Overall, there are different options for actual contracts and service facility agreements – just make sure it`s suitable for all parties involved. Granata explains: ”This means that there are no holiday rights and no protection against dismissal. It is a more flexible model; There is no structure in terms of remuneration or how services are paid. An independent contractor has more flexibility, autonomy and control over their own services. Recently, a dental practice faced such a situation. ”You can call something an independent contractor contract, but if it`s actually an employment commitment, the courts treat it as such. The clinic was not allowed to control how the physician provided his services to his clients. In examining the relationship in the contractual and practical sense, the ATO found that the relationship between the physician and the clinic was not characteristic of an employer-employee relationship. In this case, it was crucial that the services be provided by the clinic dentist for a fee.

This type of agreement can be distinguished from a facilities management agreement, where the clinic or office manager provides administration and facilities to the clinician or professional for an administrative fee. While work flexibility continues to increase in the dental profession, it is important for practice owners to understand the different contracts and commitments. Without a little due diligence, an employer can enter into a fake contractual agreement without realizing it. The firm owner and staff member need to understand this issue, especially if a graduate accepts a first paid position. .