Associate Dentist Agreement: Clauses Clinics Should Check

Yes, if you're engaging an associate dentist in Australia, you should have a written associate dentist agreement before they start treating patients.

The tricky part is that this isn't just a standard contractor agreement with the word "dentist" added in. A dental practice associate agreement needs to deal with patient records, billings, access to rooms and equipment, clinical independence, insurance, restraints and the risk that the arrangement could be treated as employment.

That matters whether you run the clinic or you're reviewing an offer as an associate. Clear terms help everyone understand how the relationship works from day one, and they can prevent awkward disputes later about money, patients and who is responsible when something goes wrong.

What Is An Associate Dentist Agreement?

An associate dentist agreement is a contract between a dental clinic and a dentist who provides services through the clinic, usually using the clinic's rooms, equipment, staff and patient systems.

You'll often see it called a dentist contractor agreement, dental practice associate agreement or dentist service agreement. The name isn't the most important part. What matters is whether the document accurately reflects the real arrangement.

For example, an associate dentist may:

• provide dental services to patients of the clinic
• use the clinic's dental chairs, instruments, software and reception team
• receive a percentage of billings or collections
• cover some lab, materials or failed appointment costs
• work particular days or sessions at the clinic
• need approval before doing certain advertising or using the clinic's name

A well drafted agreement should make those details clear. It should also match the clinic's policies, privacy processes and patient communications. If the contract says the dentist is running their own business, but the clinic controls their hours, fees, leave, uniforms and day-to-day work like an employee, that mismatch can create legal risk.

Templates can be a useful starting point, but they often miss dental-specific issues. In this space, the details are doing a lot of work.

Is An Associate Dentist A Contractor Or Employee?

It depends on the real substance of the working relationship, not just the label in the agreement.

Under the Fair Work Act 2009, a dentist may be a contractor or an employee depending on factors such as control, independence, payment structure, ability to delegate, tools and equipment, business risk and whether the dentist is really working in their own business.

From 26 August 2024, changes to the Fair Work Act mean the way courts and regulators assess employment status for many arrangements looks at the real substance, practical reality and true nature of the relationship. That makes it even more important that your contract and your day-to-day practice line up.

Contractor indicators might include:

• the dentist has their own ABN and professional indemnity insurance
• the dentist can accept or decline sessions, within agreed notice rules
• the dentist has clinical autonomy and carries professional responsibility
• payment is linked to services or collections, rather than a fixed wage
• the dentist can work at other clinics, subject to reasonable conflicts and restraints

Employee indicators might include:

• you set fixed hours and require approval for any absence
• you control how the dentist performs their work beyond clinic policies and safety requirements
• the dentist is integrated into the business like staff, with little independence
• you provide all tools and take nearly all commercial risk
• the dentist can't realistically work for anyone else

Getting this wrong can lead to claims for employee entitlements, Fair Work issues and, in some cases, sham contracting concerns. There can also be superannuation and payroll tax consequences, so you may need accounting advice as well as legal advice.

Say you run a dental clinic in Parramatta and engage Dr Lee for 3 days a week on 40% of collected billings. The contract calls Dr Lee a contractor, but you require 8:30am to 5:30pm attendance, approve all leave, set every fee, ban work at any other clinic and manage Dr Lee exactly like employed staff. That arrangement carries more employee risk than a document alone can fix.

Who Owns The Patient Records And Treatment Notes?

The agreement should clearly say who controls the patient records, who can access them and what happens when the associate dentist leaves.

Patient records are one of the biggest issues in an associate dentist agreement in Australia because dental records contain health information. Health information is sensitive information under the Privacy Act 1988, and many dental clinics also need to comply with the Australian Privacy Principles.

In practice, the clinic usually controls the patient file if the patient is booked through the clinic, treated using the clinic's systems and billed by the clinic. However, the associate dentist still has professional obligations to create accurate notes and may need access to records for continuity of care, responding to complaints under the clinic's complaints handling policy, audits or insurance matters.

Your agreement should deal with:

• who owns or controls the clinical records
• where treatment notes must be entered and by when
• whether the associate can keep copies, and in what circumstances
• how patient requests for access or transfer of records are handled
• what happens if the associate moves clinics and a patient wants to follow them
• confidentiality obligations after the relationship ends

Retention periods for health records can depend on your state or territory and the type of patient, including whether the patient was a child. Your agreement shouldn't guess. It should require compliance with the clinic's record keeping policy, privacy policy, professional obligations and any state or territory health records laws that apply.

A practical clause might say the associate must enter complete treatment notes into the clinic's approved software on the same day as treatment, and can't export patient lists or records unless the clinic has approved it and the patient has given any required consent.

How Should Billings, Facilities And Lab Fees Work?

The agreement should set out exactly how the associate is paid and what costs are deducted before any percentage is calculated.

Money disputes often happen because the contract says something broad like "40% of billings" without explaining whether that means gross billings, collected receipts, GST-inclusive amounts, health fund rebates, lab fees, write-offs, refunds or bad debts.

You want the payment clause to be boringly clear. It should cover:

• whether the percentage applies to gross billings, net billings or collected receipts
• when the clinic pays the associate, such as weekly, fortnightly or monthly
• what happens if a patient doesn't pay, disputes a charge or receives a refund
• who pays lab fees, materials, consumables and specialist referral costs
• whether the associate pays a facility fee, service fee or management fee
• how adjustments are made if claims are reversed by a health fund
• whether GST applies to any service fees between the parties

A Simple Billing Example

Let's say Dr Patel treats patients at your Melbourne clinic and the agreement says Dr Patel receives 40% of collected receipts after lab fees.

In one fortnight, the clinic collects $22,000 for Dr Patel's treatments. There are $2,000 in lab fees for crowns and appliances. If the contract deducts lab fees first, the calculation is $22,000 minus $2,000, then 40% of $20,000. Dr Patel receives $8,000 for that period.

If the contract instead says 40% of gross billings and the associate separately reimburses 50% of lab fees, the result may be different. That's why the wording needs to match the commercial deal.

You should also be careful with patient pricing. The Australian Consumer Law applies to how your business advertises and represents prices to patients. If the clinic advertises a fixed price or no-gap offer, make sure your associate agreement and billing systems can actually deliver that without confusion.

Can A Clinic Restrict An Associate Dentist After They Leave?

Yes, a clinic can include restraints, but they need to be carefully drafted and reasonable to have the best chance of being enforceable.

Restraints are common in dental associate agreements because patient relationships are valuable. You may want to stop an associate from setting up next door, soliciting patients or recruiting your dental nurses as soon as they leave.

Common restraint clauses include:

• Non-solicitation of patients: stopping the associate from actively encouraging clinic patients to move
• Non-dealing: stopping the associate from treating certain patients for a period, even if the patient approaches them
• Non-compete: stopping the associate from working within a set area for a set time
• Staff non-solicitation: stopping the associate from poaching employees or contractors
• Confidentiality: protecting patient lists, pricing, business plans and operational information

The broader the restraint, the harder it can be to justify. A restraint that prevents a dentist from working anywhere in Sydney for 2 years is very different from one that stops them soliciting patients they treated at your clinic for 6 months within a 5 kilometre radius.

Restraint law is state-based in important ways. For example, New South Wales has the Restraints of Trade Act 1976, which can affect how restraints are assessed and read down. Other states and territories take different approaches through common law principles.

If you're the clinic, the restraint should protect legitimate business interests, not punish the associate. If you're reviewing the offer, check whether the restraint would realistically stop you from working in your local area after the agreement ends.

What Should Your Agreement Include?

Your agreement should cover the commercial deal, the clinical rules and the practical day-to-day arrangements in one document.

For dental clinics, a good agreement usually needs more than payment and termination clauses. It should also reflect professional obligations under the Dental Board of Australia, AHPRA registration requirements, privacy laws and your clinic's internal policies.

Clinical Autonomy And Clinic Standards

The agreement should recognise that the associate dentist is responsible for their own clinical judgment. At the same time, your clinic can require compliance with reasonable policies, infection control procedures, appointment systems, record keeping standards and patient communication processes.

This balance matters. Too much control may increase employee risk. Too little structure can create safety, quality and brand problems for the clinic.

Insurance And Registration

Dental practitioners must have appropriate professional indemnity insurance arrangements for their practice. Your agreement should require the associate to maintain current AHPRA registration, professional indemnity insurance and any other cover you reasonably require.

You should also check how your clinic's own insurance responds. Don't assume the associate is covered under your policy, or that their policy covers work done using your facilities.

Termination And Notice

There's no single mandatory notice period for every associate dentist contractor or clinical services arrangement. The right period depends on the commercial arrangement, patient handover needs and whether the relationship might actually be employment.

Common issues to cover include immediate termination for serious breaches, loss of registration, insurance lapses, misconduct, unsafe practice, privacy breaches and failure to keep records.

Fill-In Outline For An Associate Dentist Agreement

This outline isn't a finished legal document, but it shows the clauses a lawyer would usually tailor before you use it.

1. Parties And Background: list the clinic entity, ABN or ACN, the dentist's details and the purpose of the arrangement.
2. Services: describe the dental services, days, locations and any limits on scope of practice.
3. Status Of Relationship: state whether the arrangement is intended as contractor or employment, and make sure the actual terms support that.
4. Facilities And Support: set out access to rooms, dental chairs, equipment, staff, software, supplies and supplier arrangements.
5. Fees And Payment: explain percentages, collections, deductions, lab fees, refunds, timing and invoicing.
6. Clinical Standards: require AHPRA registration, Dental Board compliance, infection control and accurate notes.
7. Patient Records And Privacy: cover ownership, access, confidentiality, consent and record retention processes.
8. Insurance: require professional indemnity insurance and evidence of cover.
9. Leave, Sessions And Availability: explain notice for unavailable sessions, holidays and replacement arrangements.
10. Restraints And Confidentiality: protect patient relationships, staff, business information and patient lists.
11. Termination: set notice periods, immediate termination triggers and handover obligations.
12. Dispute Process: include a practical process for raising and resolving issues before they escalate.

Key Takeaways

• An associate dentist agreement should be tailored to dental practice realities, not treated as a generic contractor agreement.
• Contractor versus employee status depends on the real substance of the arrangement, not just the label in the contract.
• Patient records, privacy and treatment notes need clear rules because health information is highly sensitive.
• Payment clauses should spell out exactly how billings, collections, lab fees, refunds and facility costs are handled.
• Restraints can protect your clinic, but they should be reasonable and matched to your actual business interests.
• Clinical autonomy, AHPRA registration, insurance and clinic policies all need to work together in the agreement.

If you'd like help with your associate dentist agreement, contractor versus employee risk, patient records clauses or restraint terms, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.