# No-Show Policy — T&Cs Legal Analysis
**Prepared:** 2026-02-21 12:30 AEDT
**Author:** Harper (Finance/Legal)
**Request:** Rivet (from Michael) — no-show policy for Terms of Service
**Status:** COMPLETE — Sent to Rivet

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## 1. Michael's Proposal

| Element | Proposed |
|---------|----------|
| Refund | Full refund to contractor |
| Compensation | Next hire free |
| Worker penalty | 2-strike system (2 no-shows = removed from platform) |

## 2. My Assessment: Good Foundation, Needs Refinement

Michael's instincts are right — protect the contractor, penalise reliability failures. But there are legal and financial nuances to address.

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## 3. Industry Comparison

| Platform | No-Show Policy | Refund | Worker Penalty |
|----------|---------------|--------|----------------|
| **Airtasker** | Cancellation fee charged to tasker (connection fee), full refund to poster | Credits (convertible to cash) | Reliability score drops; repeated issues → account restrictions |
| **Uber** | Driver no-show → rider refund, rider no-show → cancellation fee | Full refund | Account deactivation after pattern |
| **HiPages** | No direct no-show policy (subscription model, not per-job) | N/A | Lead quality complaints → review |
| **Hipages/Oneflare** | Dispute resolution between parties | Case-by-case | Reviews/ratings impact |
| **TaskRabbit** | Tasker cancellation fee (variable) | Full refund for no-show | Trust score penalties, eventual removal |

**Industry standard pattern:** Full refund + progressive discipline (warnings → restrictions → removal). Most platforms DON'T offer "next hire free" — that's above market and generous.

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## 4. Legal Considerations

### 4.1 Unfair Contract Terms (ACL — CRITICAL)

Since November 2023, unfair contract terms in standard form contracts are **illegal** with substantial penalties (up to $50M for corporations). The 2-strike removal system needs careful drafting to avoid being classified as unfair.

**Risks with blunt "2 strikes = removed":**
- Must give the worker a fair opportunity to respond/dispute
- Must define "no-show" clearly (what if they were 15 min late? Had a genuine emergency?)
- Unilateral removal without appeal process could be deemed unfair under s23 ACL
- Term must be transparent and reasonably necessary to protect RateRight's legitimate interests

**Safe drafting principles:**
- Define "no-show" precisely (e.g., failure to attend agreed location within 1 hour of agreed time without 2+ hours prior notice)
- Allow for reasonable exceptions (medical emergency, family emergency — with evidence)
- Provide a review/appeal process (even simple — email to dispute)
- Give written notice of each strike
- Make the consequence proportionate (e.g., first strike = warning + flag on profile, second = temporary suspension, third = removal with appeal rights)

### 4.2 RateRight as Intermediary — Liability Shield

**This is the most important legal point.** The T&Cs must make crystal clear:

1. RateRight is a **marketplace/introducer**, NOT a party to the employment arrangement
2. The hire relationship is between the **contractor and the worker** directly
3. RateRight does NOT guarantee worker attendance, performance, or suitability
4. RateRight's service is the **introduction/matching** — which is complete when the match is made
5. A worker no-show is a breach of the worker-contractor relationship, NOT a failure of RateRight's service

**Why this matters:** If we frame the $50 as paying for a "guaranteed worker," then a no-show IS a failure of our service under ACL consumer guarantees (service fit for purpose, delivered within reasonable time). We'd OWE the refund.

If we frame the $50 as paying for an "introduction/match," then we've delivered our service. The refund becomes a **goodwill policy**, not a legal obligation. Much stronger position.

**Recommended T&Cs language (concept):**
> "The Service Fee covers the introduction and matching service provided by RateRight. RateRight does not guarantee the attendance, performance, quality of work, or conduct of any Worker. The engagement between Contractor and Worker is a direct relationship to which RateRight is not a party."

### 4.3 Refund — Financial Impact

**Full refund:** $50 back to contractor. At current scale, this is negligible. At 100+ hires/month, if no-show rate is industry-typical 5-10%, that's 5-10 refunds/month = $250-$500/month revenue lost.

**"Next hire free":** This is effectively a $50 credit. Combined with the refund, a single no-show costs RateRight $100 in revenue (refund of first + waiver of second). At scale this adds up.

**My recommendation:** Offer the full refund (strong, fair, builds trust). Drop "next hire free" — it's generous beyond industry standard and creates a perverse incentive (contractors might prefer a no-show if they get a free hire out of it). Replace with a simpler goodwill gesture if needed.

### 4.4 Dispute Resolution

The T&Cs should include:
1. **Definition of no-show** with clear criteria
2. **Reporting mechanism** — contractor reports no-show within 24-48 hours
3. **Evidence standard** — what proof is needed (screenshot of messages, time confirmation)
4. **Worker's right to respond** — before any penalty is applied
5. **Escalation path** — internal review → mediation (if needed)
6. **Timeframe for refund** — within 5-10 business days of confirmed no-show

### 4.5 Worker Removal — Due Process

Under ACL unfair contract terms provisions, removing a worker (denying them access to the platform) needs to be:
- **Transparent** — the worker knew this was a consequence when they signed up
- **Proportionate** — graduated response, not immediate permanent ban
- **Fair** — worker gets a chance to explain/dispute
- **Consistently applied** — same rules for everyone

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## 5. Recommended Policy Structure

### Tier 1: First No-Show
- Contractor gets **full $50 refund** (processed within 5 business days)
- Worker receives **written warning** via platform notification/email
- No-show flag added to worker's profile (visible internally, not to contractors initially)
- Worker must acknowledge the warning

### Tier 2: Second No-Show (within 12 months)
- Contractor gets **full $50 refund**
- Worker receives **14-day suspension** from receiving new matches
- Worker must complete a "reliability acknowledgement" to be reactivated
- No-show history visible to contractors on worker's profile

### Tier 3: Third No-Show (within 12 months)
- Contractor gets **full $50 refund**
- Worker **account suspended** pending review
- Worker may appeal within 14 days with supporting evidence
- If no appeal or appeal unsuccessful → permanent removal

### Reset: Clean record after 12 months without incident

### Exceptions (No Strike Recorded):
- Medical emergency (with evidence — medical certificate, hospital record)
- Family emergency (death, serious injury of immediate family)
- Natural disaster / extreme weather event
- Contractor-initiated change (moved location, changed time without agreement)

### What IS a No-Show:
- Worker fails to arrive at agreed location within **60 minutes** of agreed start time
- Worker does not provide at least **2 hours' prior notice** of inability to attend
- Worker arrives but refuses to perform the agreed work without reasonable cause

### What is NOT a No-Show:
- Worker gave 2+ hours notice and parties couldn't reschedule
- Contractor changed terms (location, time, scope) without worker agreement
- Genuine emergency with evidence provided within 48 hours
- Communication failure (e.g., wrong address given by contractor)

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## 6. Suggested T&Cs Clause (Draft Concept)

> **8. No-Show Policy**
>
> 8.1 RateRight provides an introduction and matching service between Contractors and Workers. RateRight is not a party to any engagement between a Contractor and a Worker, and does not guarantee the attendance, performance, or conduct of any Worker.
>
> 8.2 A "No-Show" occurs when a Worker fails to attend the agreed work location within 60 minutes of the agreed start time without providing at least 2 hours' prior notice to the Contractor through the Platform.
>
> 8.3 In the event of a confirmed No-Show:
> (a) The Contractor is entitled to a full refund of the Service Fee, processed within 5 business days of the No-Show being reported and confirmed;
> (b) The Worker will receive a formal warning recorded against their account.
>
> 8.4 RateRight operates a graduated reliability system:
> (a) First No-Show: Written warning;
> (b) Second No-Show within 12 months: 14-day suspension from receiving new matches;
> (c) Third No-Show within 12 months: Account suspension, subject to the Worker's right to appeal within 14 days.
>
> 8.5 A No-Show will not be recorded where the Worker demonstrates, to RateRight's reasonable satisfaction, that the failure to attend was due to a genuine emergency, including medical emergency, family emergency, or natural disaster.
>
> 8.6 Nothing in this clause limits any rights the Contractor or Worker may have under the Australian Consumer Law.

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## 7. Bottom Line for Michael

**Your instincts are right. Refine the details:**

| His Proposal | My Recommendation | Why |
|--------------|-------------------|-----|
| Full refund | ✅ Keep | Fair, builds trust, industry standard |
| Next hire free | ❌ Drop | Above market, costs $100/incident, creates perverse incentive |
| 2-strike removal | ⚠️ Modify to 3-tier | 2-strike permanent removal risks unfair contract terms challenge under ACL. 3-tier (warning → suspension → removal with appeal) is legally safer and still tough |

**Three critical legal points:**
1. Frame the $50 as paying for the **introduction**, not a guaranteed worker — protects our liability position
2. Give workers **due process** before removal — ACL unfair contract terms are now illegal with massive penalties
3. Define "no-show" **precisely** — ambiguity creates disputes

**Financial note:** At scale (100+ hires/month, 5% no-show rate), refunds cost ~$250-500/month. Manageable. "Next hire free" would double that.

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*Sources: ACCC, NSW Fair Trading, Dundas Lawyers (marketplace T&Cs guide), Airtasker cancellation policy, K&L Gates (UCT regime), ACL s23-s28*