The System

Principles of the ODCO® Decision

The System is based squarely on the contractual arrangements, documents and principles adjudicated upon in the ODCO® decision. The foundation of the System is that it creates contractual relationships whereby the worker is a contractor and not an employee of either the licensed agency or the licensed agency's client. There are only two contracts, that between the contractor and the agency and that between the agency and the client. Neither of those contracts are contracts of employment. Those two contracts provide all of the essential terms of the whole arrangement. There is no contract whatsoever between the contractor and the client.

It is this part of the system that is unique. The ODCO® decision found that even though the contractors were directed in their work on a day to day basis by the client, this did not create a contract between the client and the contractor as that direction occurred by virtue of the other two contracts which were already in existence. In fact the System makes it clear to the clients that the contractors are "yours to direct". Accordingly, the usual argument that direction by the client creates a contract of employment between the client and the contractor is removed because that direction occurs by way of the already existing arrangement.

Any other instances of direct contact between the client and the contractor, which are inevitable on a day to day basis, are also accepted by the ODCO® decision as being part of the original two contracts. This remains the case whether the industry is the Victorian building industry or, for example, the Queensland shearing industry. The principle remains the same.

Click here to watch a 1 minute video (992Kb - 3 min@56K) (Best Quality)	OR	Click here to watch a 1 minute video (279Kb - 1min@56K) (OK Quality)
To play the above video you will require Real Player. If you dont already have this great video player, you can download it here for free.		To play the above video you will require Media Player. If you dont already have this great video player, you can download it here for free.

Click here to find out What is ODCO®?