Establishing staff contracts in the private sector

[Physiobase]

Physiobase has been investigating the development of a general document that could be used (and amended) to suit the many needs of the private practitioner.

We are wanting to know if physios in private practice management would appreciate this development. We would like to structure something that bases the relationship on salary, percentages of business, hours of work, contractors versus employees, holiday (paid and not-paid) and importantly something about what, where and how long restriction might be place on a staff member leaving the business and setting up next door.

If anyone can copy and paste anything into this forum they are currently using or any sentences they have found hold better legal weight. We will compile all the information and keep representing it as an "open source" document for the better good of all practice managers and owners.

many thanks 8o

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[MrPhysio+]

A general staff contract information pack would be good, however it will be difficult to assemble and be relevant across State & Country borders due to legislation variables. For instance: in Australia there are Federal & State laws governing restrictive trade practice. These laws cause confusion as the courts bring down different judgements, dependent upon where the case is heard. A case in point relates to contracts signed restricting a former employee from seeing patients within a cetain time post leaving your employ, or how far away they are allowed to set up their new clinic. If a contract states specific restrictions, it may be unenforceable, or worse, cause legal retribution which could cost a significant amount to defend. It used to be the case that membership of an Association governed ethical behaviour relted to employees taking patients or setting up nearby, however it is doubtful whether these ethical guidelines are enforceable, or if in fact they were ever enforceable as they were guidelines rather than rules. Business no longer has niceties - it can be cut throat.

General advice related to employee / employer provisions would be useful, but any such advice would need to be carefully checked against local laws and provisions. For example, Australian Workplace Agreements require specialist knowledge to write, or serious problems can arise many years after an emloyee leaves. Different definitions of an employee compared to a contractor occur between Taxation, Superannuation, and WorkCover Insurance, potentially causing further confusion & problems.

If a way around the above problems can be found, I look forward to reading the information.
Regards
MrPhysio

[Physiobase]

Thanks Mr Physio

Your point is valid and perhaps by asking numerous countries to comment on this issue we might highlight a a few areas that some might not have thought about.

I would be keen to offer a huge list of possible inclusions in an employee/contractor pack whereby the user can pick and choose their clauses depending on what might legally stick in their country. Legal frameworks, whether defensible in court or not, are often used as a strong deterant due to the potential slur on seomeones reputation and their cost of defending it.

So I am all for putting in as many useful clauses into a contract as is appropriate that highlight the nature of the agreement. This at worse could be used to justify any potentially slanderous comments made about a third party should it be needed in the future.

Perhaps some could start by pasting a contract wording into this forum and then we can all add to it, comment, mold etc it into something really useful.

[alophysio]

I use one based on the APA/PBA but i am not sure how happy they would be if i pasted it up...

Bascially you should consider all aspects of the business including marketing and client retention and intellectual property. Set the ground rules so it is clear.

With my receptionists, I try not to have a hard and fast list of what their duties are otherwise they will just point to the list and say "that's not on the list therefore i am not doing it" (I have one receptionist like that!) So try to keep the points as general (yet specific :lol ) as possible...

It is a good idea for a post though! Keep up the good work physiobase!

[Physiobase]

Below is a sample idea from an old contract used to retain someone to do a job at a third party contract. There are numerous additions and ideas we can add via ongoing discussion. As a rough, non legal document, it would perhaps be a useful place to start some further discussion:
__________________________________________________ __

Contractor’s agreement between
PhysioX Ltd (xxx xxxxx)
And Physio Company Ltd (xxxx xxxxx)

Monday, 14 June 2004

The following document refers to the relationship between the following individuals:

PhysioX Ltd is a registered company in (country/state) – 12341234
Director: ________________________
Address: ________________________

In respect of the contractor outlined above, PX will be used to give reference to both the company PhysioX Ltd and the individual Physiotherapist __________________.

And

PC is a registered company in (country/state) – 1231234
Director: ________________________
Address: ________________________

The following information outlines the basis of the contractual relationship between PhysioX (PX) and Physio Company Ltd (PC) commencing (date).


•&nbsp &nbsp &nbsp &nbsp PC has retained the services of PX to fulfil a contractual obligation that PC has for the provision of Physiotherapy services.

•&nbsp &nbsp &nbsp &nbsp The current location of this place of work is at__________________ though may from time to time vary according to the expansion of the service and the needs of the PC and any associated companies. This includes current occupational health contracts.

•&nbsp &nbsp &nbsp &nbsp PX acknowledges that PC has a longstanding relationship with the provision of Physiotherapy services both within (the local area) and also to (any named third party companies or organisations e.g. schools, occupational health contracts). In this respect PX understands and agrees that he/she/they have been retained by PC to service part of PC’s current business relationships.

•&nbsp &nbsp &nbsp &nbsp As long as PC maintains a working business relationship with (any named third party companies or organisations e.g. schools, occupational health contracts), PX will NOT, at anytime directly or otherwise, approach (any named third party companies or organisations e.g. schools, occupational health contracts) or any of its subsidiaries to tender for part or all of the Physiotherapy services unless this approach is on behalf of PC. This point may be assumed as void if PC has ended its arrangement with the above mentioned organisations.


•&nbsp &nbsp &nbsp &nbsp PC will pay PX (hourly rate) for all hours worked either at the main PC practice or at any of its third party contracts. Initially this is expected to be x hrs per week. PX understands that the caseload and the hours work may vary as the business need change.

•&nbsp &nbsp &nbsp &nbsp PC has a standard clause in its contracts with (above named third party contracts) that increases its fees by x% per annum. So long as this remains in place then PX can expect to receive a x% per annum increase in the hourly rate when servicing those contracts. The increase is valid annually from the start of this contract.

•&nbsp &nbsp &nbsp &nbsp In order to accurately account for all hours worked PX will submit weekly timesheets via email or in person to PC. Payments will not be made without first receiving the correctly filled out time-sheet.

•&nbsp &nbsp &nbsp &nbsp PC will pay all monies owed to PX at the end of each month following receiving the final monthly timesheet. This money will be transferred directly into the PX bank account within 30days,

PX’s bank details to be filled in
&nbsp &nbsp &nbsp &nbsp Bank Name:
&nbsp &nbsp &nbsp &nbsp Bank Sort Code/ BSB:
&nbsp &nbsp &nbsp &nbsp Account Name:
&nbsp &nbsp &nbsp &nbsp Account Number:
&nbsp &nbsp &nbsp &nbsp
•&nbsp &nbsp &nbsp &nbsp PX has acknowledged that they will try to accommodate, where possible, any increase in the number of hours required by PC to fulfil its Physiotherapy services obligation both within the practice and with third parties relationships. In the case where PX cannot increase these hours PC may contract additional staff to help meet the current needs.

•&nbsp &nbsp &nbsp &nbsp As PX is an independent contractor PC acknowledges that PX can take holidays as and when they like. However it is expected that PX provide 4 weeks notice for any extended holiday periods as cover will need to be organised.

•&nbsp &nbsp &nbsp &nbsp The period of notice should either party wish to terminate this agreement is NOT less than a period of x weeks. This point refers to circumstances where PX wishes to discontinue working for PC or should PC no longer require the services of PX.





Signed on behalf of PC

______________________________________ Date __________________________

Signed on behalf of PhysioX Ltd

______________________________________ Date __________________________