MLM Intel’s “Intro to MLM (Part IV)” – Employment Status Loophole

Last week we looked at a case study, of a cosmetics MLM operating in Australia, and being rather difficult in how it provides (or rather doesn’t provide) refunds and guarantees.

And finally, here it is – I know you’ve been waiting patiently for it!


An ‘Independent Distributor’ (ID) is neither a retailer nor a manufacturer. This is where additional risks have been identified with the employment status of ‘Independent Contractors’ (ICs) which I seek to address in upcoming posts. For the purposes of uniformity and ease of understanding for this post only, let’s assume that for legal, employment, taxation and superannuation purposes, an ‘Independent Distributor’ is in fact an Independent Contractor by Australian definitions.

Independent contractors in Australia are also governed by The Independent Contractors Act 2006 and the Fair Work Act 2009 — these two acts govern and protect the rights, responsibilities and guidelines…

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