The Australian Building Construction Commisison has released its long awaited report into sham contracting.

The lengthy report makes it clear that businesses that engage sub-contractors are going to face increasing scrutiny in the immediate future.  The crackdown on contracting arrangements is part of a wider set of actions including extra attention from the Fair Work Ombudsman and the Australian Taxation Office.

Businesses need to understand that there is significant risk to them if they incorrectly classify workers as contractors when they are actually employees.  Incorrect classification can result in claims for underpayment of wages and overtime, allowance, leave entitlements, unfair dismissal and statutory offences for engaging in sham contracting

ESSA can assist employers in understanding their obligations in this complicated area.

The Fair Work Act Review Panel has released a background paper detailing the review process and a timetable for submissions.

Persons wishing to make submissions need to act quickly as submissions are due by 17 February 2012.

Information about the review is available from www.deewr.gov.au.

Happy New Year to all ESSA clients.

2012 will be a challenging year in the area of industrial/workplace relations.  A review of the Fair Work Act 2009 is underway as well as a review of the modern award system.

Whilst it is important that these reviews occur to tidy up some of the unintended consequences of the new legislation, the inevitable result of this will be that there is going to be more change to the system that has been under constant change since it commenced in July 2009.

We will do our best to keep clients informed as this process proceeds.