News

‘Larger companies are pushing freelancers to breaking point’: Small business ombudsman calls for fair treatment

Kate Carnell, The Australian Small Business and Family Enterprises Ombudsman (ASBFEO) is backing freelancers in their push for fairer treatment from large corporations.

“Some larger companies are pushing freelancers to breaking point and there are no rules in Australia that prevent this,” she said.

“Freelancers generally work alone and can’t afford to be waiting three months or more for payment.

“There’s no justification for standard invoices to not be paid in 30 days or less.”

Carnell added New York’s payment-terms legislation – which provides freelancers the right to a written contract for work paying a total of $800 or more over 120 days – would be relevant in Australia if big businesses couldn’t resolve the issue.

The founder of The Freelance Collective Nina Hendy agreed, saying Australian freelancers deserve better when it comes to payment terms.

“Without a doubt, getting paid on time is one of the most difficult parts of working freelance. We’re often a one-man-band up against a multinational, and they hold all the cards when it comes to when we get paid,” Hendy said.

“We hear lots of stories of freelancers having their payment terms clearly stated on their invoice, but being completely ignored by companies who instead enforce their own extended terms.”

The support follows Carnell’s inquiry into payment times and practices, which indicated a need for quicker payments to small businesses who were operating as creative soloists, contractors and freelancers.

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.