Wed 22 Oct 2014
Accessorial Liability – Where Do Your Responsibilities Begin and End?:
Many businesses use contracting as a legitimate and integral part of their business model. However, a principal may be liable for breaches of federal workplace laws by their contractor or even a sub-contractor if the principal is an accessory to that breach.
In recent times there has been a concerted effort by the Fair Work Ombudsman to hold businesses to account under the Fair Work Act if their contractor or sub-contractor is not compliant with the federal workplace laws. This is commonly called accessorial liability.
In order to avoid falling foul of the accessorial liability provisions, businesses need to be aware of their responsibilities, and be satisfied that their contractors and even subcontractors are compliant.
In this eBulletin from Landers & Rogers Lawyers, we look at the issue of responsibility and contractor management, including tips for how businesses can reduce the risk of their contracting practices exposing them to claims of being an accessory to a breach of the Fair Work Act.