6359.0 - Forms of Employment, Australia, November 2012 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 19/04/2013   
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Key changes made to Forms of Employment Survey (FOES) include:

  • Revision of population benchmarks
    The Labour Force Survey estimates, and estimates from the supplementary surveys, are calculated in such a way as to sum to independent estimates of the civilian population aged 15 years and over (population benchmarks). These population benchmarks are based on Estimated Resident Population (ERP) data. Generally, revisions are made to population benchmarks for the LFS following the final rebasing of population estimates to the latest five yearly Census of Population and Housing, or when the need arises.

    From February 2009 Labour Force Survey estimates have been compiled during population benchmarks based on the 2006 Census of Population and Housing. Revisions were applied to the LFS population benchmarks in July 2010 and December 2012 to take into account the latest available population estimates. The latest revision undertaken in December 2012 is not reflected in the estimates presented in this issue.

    Changes to the LFS population benchmarks impact primarily on the magnitude of the Labour Force Survey estimates (i.e. employment and unemployment) that are directly related to the underlying size of the population. For more details on population benchmarks, see the Explanatory Notes in Labour Force, Australia (cat. no. 6202.0) and for details about the revisions made, see the article in the November 2012 issue of Labour Force, Australia (cat. no. 6202.0) and the article in the September 2010 issue of Labour Force, Australia (cat. no. 6202.0).

  • Changes in the scope of the survey

    From November 2008 FOES was conducted in both urban and rural areas in all states and territories, but excluded people living in Aboriginal and Torres Strait Islander communities in very remote parts of Australia.
  • Form of employment
    The following provides an outline of how people are classified in the 'Form of employment in main job' data item. This has been used since 2008.

    People are classified as employees, owner managers of incorporated enterprises (OMIEs) and owner managers of unincorporated enterprises (OMUEs) based on their responses to questions in the monthly Labour Force survey (LFS).

    Employees from the LFS are people who:
      • work for a public or private employer; and
      • receive remuneration in wages, salary, or are paid a retainer fee by their employer and worker on a commission basis, or for tips or piece-rates or payment in kind; or
      • operated their own incorporated enterprise with or without hiring employees.

Owner managers of incorporated enterprises from the LFS are people who:
      • work in their won incorporated enterprise, that is, a business entity in which is registered as a separate legal entity to its members or owners (also known as a limited liability company).

Owner managers of unincorporated enterprises from the LFS are people who:
      • operate their own unincorporated enterprise, that is, a business entity in which the owner and the business are legally inseparable, so that the owner is liable for any business debts that are incurred. Includes those engaged independently in a trade or profession.

These people from the LFS are then asked questions in the FOES to identify key characteristics of independent contractors, other business operators. The responses to these questions are then used to determine how people are classified as employees, independent contractors and other business operators in the 'Form of employment' data item.

These questions are:
      • "Do you work as an independent contractor in your job?"
      • "Do you receive a pay slip/advice?"
      • "Do you/Does your business invoice or bill clients/employers?"
      • "Excluding wages and salary, are you able to make drawings from your employer/business?"

The following decision table shows how people are classified in the 'Form of employment' data item.
  • Further changes to the Forms of Employment Survey
    Since 2008:

      The data items 'Status in employment' and 'Employment Type in main job' presented in he 2007 Forms of Employment survey and prior, are no longer presented in publications from 2008, however are available on request. The main data item used to classify employed persons is 'Form of employment in main job'. Care should be taken when comparing results from the 2012 Forms of Employment Survey to surveys prior to 2008.

      Additional information is presented in 2008 about people who found their current job through a labour hire firm/employment agency. These are, 'Whether currently registered with a labour hire firm/employment agency', 'Whether still registered with the same labour hire firm/employment agency', 'Whether paid by a labour hire firm/employment agency', 'Number of work assignments through labour hire firm/employment agency in the last 12 months', 'Whether usually had continuous/ongoing work from a labour hire firm/employment agency', and 'All/Main reasons for using a labour hire firm/employment agency'. This information was presented again in 2011.
    In 2007:
      • only owner managers of incorporated enterprises and owner managers of unincorporated enterprises were asked if they worked on a contract basis
      • only employees (excluding OMIEs) were asked if they worked on a fixed-term contract basis.

    In 2006:
      • all employed people were asked if they worked on a contract basis

    In previous surveys:
      • people who received both paid sick and paid holiday leave were not asked if they worked on a contract basis.
    In 2004:
      • Prior to 2004, people working for payment in kind were excluded from the survey. From 2004 onwards this group has been included.
    In 2001:
      • The 2001 survey excluded people aged 70 years and over.