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  • Paid to produce a specific result

    To meet the first condition of the PSI results test, you must produce a specific result or outcome before being paid.

    Note: If you're paid on an hourly basis or daily rate for the services you provide, it's unlikely that you will meet the first condition of the results test. This is because these payments are not generally linked to producing a specific result or outcome.

    Generally, you are paid to produce a specific result when:

    • outcomes and costs are agreed with the client prior to commencing the work
    • payment is made when contractual conditions have been fulfilled e.g. only on completion of each job or specific objectives (this can include receiving progress payments and deposits)
    • being paid an amount for an agreed number of completed items or activities – for example, a furniture upholstering business that is contracted to a furniture factory and paid an agreed amount for an agreed number of lounge suites completed.

    Generally, you are not paid to produce a specific result if you are paid:

    • after submitting timesheets
    • regardless of achieving a specific outcome or reaching agreed objectives.

    Example

    Joseph provides services to a local authority through his company JoCo, which has entered into a contract with the local authority.

    As a part of Joseph's role he:

    • works 40 hours per week
    • is paid fortnightly based on an hourly rate.

    JoCo can issue an invoice and be paid for the services provided up to the end date.

    The contract does not meet the first condition of the results test because JoCo:

    • isn't contracted to complete a specific job
    • isn't paid on the condition that the job is completed
    • is paid for time worked rather than the results produced.
    End of example

    Remember, you need to meet all three conditions to pass the PSI results test, so proceed to the next condition.

    Next step:

    Last modified: 07 Aug 2019QC 46008