The law applies to standard form consumer contracts and standard form small business contracts entered into or renewed on or after 12 November 2016.
A consumer contract is an agreement for the supply of goods or services, or the sale or grant of an interest in land, to an individual (not a company) for personal, domestic or household use.
A small business contract is an agreement:
- where at least one of the parties is a small business (employs less than 20 people, including casual employees employed on a regular and systematic basis), and
- where the upfront price payable under the contract is up to $300,000 (or $1 million if the contract is for more than 12 months); and
- for the supply of goods or services or the sale or grant of an interest in land.
Example: Pascal’s business has 19 full-time staff, as well as Malcolm, who works Monday to Wednesday (i.e. part-time), and Rheya, who works only one day per week (i.e. casual).
So, how many employees does Pascal have?
Obviously, the 19 full-time staff are included. And part-time staff are also included, so Malcolm is in. Lastly, Rheya is a casual employee, who works one day per week. So she is employed on a regular and systematic basis, and is included in the count.
Pascal’s business has 21 employees.