What it means for group fitness
Recent amendments to the Fair Work Act 2009 (Cth) (FW Act) have introduced a new definition of employment. These changes effectively overturn the 2022 High Court decisions in ‘Jamsek’ and ‘Personnel Contracting’ and will come into effect as of 26th August 2024.
The High Court's decisions in 2022 prioritised written contracts when defining employment relationships, marking a significant shift from the previous approach. This earlier method, known as the multi-factorial test, considered the behaviour and interactions of the parties involved rather than just the contract terms. The updated FW Act reinstates the multi-factorial approach. This means that to determine the true nature of the relationship, the “real substance, practical reality, and true nature” will be assessed. Both the terms of the contract and how the work is performed will be examined to make this determination.
The multi-factorial test considers the following:
Image source: Carter Newell
Qualified Trainers emphasises the importance for each gym or studio to evaluate their business model to ensure compliance with the new legal requirements. It is crucial that group fitness instructors have the option to choose their preferred working arrangement, whether as an employee or an independent contractor when the multifactorial test meets the employee model. As the new definition takes effect from 26 August 2024, many gym facilities and group fitness instructors may find themselves uncertain about their classification as either employees or independent contractors. This is where Qualified Trainers (QT), the cutting-edge group fitness platform, steps in. Qualified Trainers (QT) is designed to streamline the relationship between gym facilities and group fitness instructors, The features and framework ensures clarity and compliance which adhere with the updated FW Act. Here’s how QT addresses the differentiation between independent contractors and employees based on the multifactorial approach:
How Qualified Trainers solves the challenge for sub-contractors
Clear contractual agreements & compliance
Using the QT platform, gym facilities can create comprehensive service agreements that clearly outline the nature of the relationship with instructors. These agreements can be filled out and uploaded by instructors, providing a transparent and legally sound basis for their engagement.
When contractors upload their credentials to the platform, they allow multiple gym facilities (businesses) access to these documents (if they choose to) with the goal to increase their opportunity to find new work. This takes away control from the gym facility removing the need to directly request certifications.
Comprehensive scheduling/extent of control
Gym facilities can create detailed schedules using QT, which instructors can view and manage. This feature allows instructors to delegate their classes if they are unavailable, a flexibility that aligns with the characteristics of an independent contractor.
Refusal of work and opportunities to find new work
Instructors on QT can remove the connection between the facility if they wish to be no longer engaged. As an independent contractor, they have control over which gym facilities they wish to engage with which also allows them to find new work.
Centralised communication
All communication, including messaging between gym facilities and instructors, is conducted through the QT platform. This centralisation ensures that all interactions are documented, further clarifying the nature of the working relationship. This also deters other communication channels which may be used with employees.
Future invoicing features
QT is set to introduce invoicing capabilities, allowing instructors to generate invoices and send to the gym facility based on the classes they have taught. This feature supports the independent contractor model where the instructor has fall control over creation and sending for payments based on task completion rather than fixed salaries, wages, distinguishing contractors from employees.
Goodwill and reputation
QT will allow instructors to create reports and see insights based on their performance which will allow them to build their reputation for their individual business.
How Qualified Trainers Supports the Employee Model
Qualified Trainers also supports the employee model with several key features:
- Employee contracts and documentation: All relevant employee contracts and documentation can be added to the platform, ensuring everything is in one place.
- Live scheduling as roster: The live scheduling feature can be utilised as a roster, providing clarity and ease of management for both employees and employers.
- Performance insights: Facilities can monitor the performance of their staff through the insights provided by QT, ensuring employees are meeting their goals and expectations.
- Timesheets: QT will allow for accurate recording of classes taught through its timesheet functionality. Employees can log their hours, and the system will automatically track the classes they conduct, ensuring precise and reliable timesheet management. This will streamline payroll processes which will further enhance the platform's efficiency.
Whether your business model aligns with the independent contractor model or the employee model, our platform allows for transparency and clarity to ensure both parties are treated correctly.
The QT Advantage
Qualified Trainers’ robust features streamline administrative tasks, including those required by the new FW Act. By facilitating clear agreements, transparent scheduling, and centralised communication, QT assists gym facilities and instructors in meeting the new guidelines which come into effect on August 26th. The platform’s features provide the opportunity for “real substance, practical reality, and true nature of the relationship” to be clearly documented and aligned with the legal criteria for either employees or subcontractors.
Gym facilities and instructors using QT can confidently navigate the complexities of the new employment definitions, ensuring that their engagements are compliant, transparent, and beneficial for both parties. As the fitness industry adapts to these legislative changes, QT stands out as a critical tool for managing and optimising the group fitness experience.Whether your business follows the employee or independent contractor model, our software provides the optimal solution for moving forward in the group fitness industry.
Join Qualified Trainers today and experience the future of group fitness management, where compliance meets convenience, and clarity defines success.
