News / Small business offered more contractual protections /
Small business offered more contractual protections
27 November 2015
The Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Act 2015 (Cth) received Royal Assent on 12 November 2015, extending unfair contract protections to small business operators.
The new laws, which come into effect on 12 November 2016, are designed to create a more level playing field for businesses that employ less than 20 people when it comes to contractual arrangements with other (often larger) companies. Where small business once experienced little or no leeway for negotiating terms because of the rigid nature of standard form contracts, they will now be able to apply to the courts to have unfair contracts declared void.
The Australian Competition and Consumer Commission (ACCC) has encouraged small business owners to closely review the standard form contracts they use to make sure that they are compliant.
For more information please contact:
David Williams | Partner
t +61 7 3224 0270
f +61 7 3224 0333