Federal Government toughens up employment laws.
A change to contract law you might not be away of but need to be. It is essential to understand the unfair contract terms (UCT) regime and how it affects your rights and responsibilities. Otherwise, you may face serious consequences.
- employs fewer than 100 people; or
- has a turnover for the last income year of less than $10 million.
- If you haven’t already done so, review all consumer and standard form contracts immediately; and
- amend or remove UCTs from these contracts. For example, if you have a clause that allows you to unilaterally terminate the contract for convenience, or a clause that limits your liability (but not the customer’s), consider removing these clauses or making them mutual.
- causes a significant imbalance in the rights and obligations of the parties;
- is not reasonably necessary to protect the legitimate interests of the business; and
- causes detriment to one party if the other party seeks to rely on it.
- avoid or limit their obligations under the contract;
- terminate the contract;
- penalise the other party for breaching or terminating the contract; or
- vary the terms of the contract.
- one party possesses the bargaining power;
- one party prepares the contract without a discussion between the parties;
- the other party must accept or reject terms on a ‘take it or leave it basis’; or
- the other party does not have an adequate opportunity to negotiate the terms of the contract.
- mobile phone plans;
- airline sales terms and conditions;
- gym memberships;
- information technology licences; and
- online contracts where the party is required to tick an acceptance box to accept terms and conditions.