Negotiating with a registrar
For Supervisors negotiating terms with Mentor Registrars
As yet, a ratified minimum terms and condition document specific for mentor/subsequent time/mandatory elective time does not exist. However, the following has been put together to assist supervisors in negotiating terms for mentor/subsequent/mandatory elective time. Registrars have been told they may choose to enter an employee/employer relationship or they may choose to work as an independent “contractor”. IGPE has advised that registrars should be employed as employees. Please note, the ATO states that registrars in their mentor time should be in an employee-employer relationship.
You should understand that you are employing a doctor that still is in the training program and as such still needs supervision and training. It is expected that they are improving every year and as such deserve a higher income than Advanced registrars but should not be expected to generate the same income for the practice as a doctor who has completed their training.
- Expected practice cost should be approx $50/hour or 50% of gross billings (may be higher or lower). --You have to pay 9% superannuation on top of an hourly rate or percentage rate.
- Employer pays for Registrars worker's compensation (cost to employer = 2%).
- As registrars are used to annual leave they often expect that this will continue, not realising that annual leave is not the way that doctors normally get paid (If you pay annual leave then the registrars wage should be reduced approx 10%).
- Registrars often feel they are entitled to sick leave, not understanding that most doctors do not get sick leave (If you pay for sick leave the registrar wage should be reduced by 2%).
- IGPE registrars are entitled to 3 hrs/month study leave for workshops plus you will have to donate 3 hrs of your time/6 months to IGPE
- Working backwards from $50/hour and giving the registrar Superannuation, Leave ,Annual, Sick and Study then this works out to be $40/hour (or approx 40%)
- Are public holidays worked?
- You must agree on an hourly rate or % or a combination of the two.
- Document the agreement
- This arrangement is not recommended by IGPE
- The Practice cost should be again approx $50/hour (approx 50%)
- The registrar is not entitled to sick or annual leave
- The registrar must purchase their own worker's compensation and show you documentation
- No employer's contribution to superannuation.
- If income is >$50,000 then they need an ABN and register for GST
- The registrar will need to provide you with tax invoices for their work.
- Is payment weekly, fortnightly or monthly?
- Is a percentage rate calculated weekly, fortnightly or monthly? (the longer the better). (NB The registrars are away from the practice 3 hours per month for education).
- Is it calculated on a percentage of billings or receipts?
- If a percentage rate of pay is given and they are paid holiday pay outside of the period used for calculation the registrar is effectively getting a much higher percentage. There may be mutually agreeable methods of getting around this problem.
- How long does the registrar intend to stay at the practice?
- Consider negotiating at the start, terms/conditions for after hours work, house calls etc
- PIP is a practice incentive and should go towards practice costs. SIP is related to services provided by the registrar and you might consider including this in the calculations if they are paid on a percentage basis
This is only a guide. You must remember that this is your practice and your patients. If in doubt, seek independent accounting advice.
For advice talk to a supervisor that has been involved with registrars.
Educational requirements (for mentor time only)
Registrars are required to attend one education session per month (at the Institute of General Practice Education). This will be for 3 hours. It is paid release time.
This information has been produced by the SLO from IGPE for the assistance of Supervisors.