The Fair Pay Agreements (FPA) Working Group identified a risk of ‘regulatory arbitrage’ if contractors were excluded from the FPA system, as such a system may create a perverse incentive to hire contractors outside FPA and employment regulation. Under current law, it would be lawful to engage in such behaviour if the real nature of the work is truly one of contracting (i.e. it was not misclassification).

This document provides advice on the best way to ‘future proof’ the Fair Pay Agreements (FPA) system so contractors can be included at a later date.