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Contingent workforce misclassification poses ongoing prosecution risks
What defines a contingent worker remains "as clear as mud", according to a lawyer, who says employers must nonetheless step up their compliance efforts in line with increasing regulator activity.
"There are a lot of new laws around misclassification, and the Fair Work Ombudsman is backing that up with prosecutions," Moray & Agnew partner Nick Duggal told the recent ATC Contingent Workforce Forum.
He highlights the 2024 Closing Loopholes amendments, which "unwound" the understanding that written agreements were the determining factor in whether a worker was an employee or an independent contractor, based on 2022 High Court rulings.
The laws have essentially returned to the more substantive, multifaceted assessment of what constitutes an independent contractor, Duggal said.
"So in other words, the legislation went back to making the definition as clear as mud..."
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