As an independent contractor, you can choose from a range of options to settle disputes, including going to court. However, resolving your dispute outside the court system may be a better way of preserving your business relationships.

Many contracts contain a clause that outlines a process for dealing with disputes between the parties so always check your contract first. The cheapest and easiest thing to do is to talk to the other party to the contract to see if you can resolve the dispute through discussion.

If you are unsuccessful in resolving your dispute through discussion or negotiation, you have other options.

Alternative dispute resolution (ADR)

ADR processes involve an impartial third person assisting the participants to negotiate. In most types of ADR, the neutral third person can't make decisions about the dispute, so the participants have control over the outcome. These processes may save you time and money and contribute to better outcomes for your business.

Court

If the problem cannot be resolved through other means, you may choose to take the matter to court. The type of dispute will determine which court the complaint must be taken to.

Unfair contracts - Federal courts

If your dispute is about an unfair contract you can apply to have your contract reviewed. If you are covered by the federal system, you can apply to either the Federal Court or the Federal Magistrates Court to have your contract reviewed on the grounds that it is unfair, and/or harsh. See our Unfair contracts and sham contracts page for more information.

Monies owed and breaches of contract - State and territory courts

Matters other than unfair contract disputes are usually heard in state or territory courts. Most of these courts have small claims divisions which are informal and try to keep costs to a minimum.