When contracting arrangements aren't clear on paper and are murky in practice, they become like the proverbial "ticking bomb", potentially resulting in massive back-pay orders for wages, superannuation contributions, and other modern award or NES entitlements.
Adopting a short-term view of independent contractors means many organisations are ignoring a huge talent pool of professionals looking for meaningful work from home, says co-director of The Interview Group, Lenore Lambert.
Organisations can minimise the risk of claims from contractors seeking employee benefits by regularly reviewing their arrangements to ensure "the weight of the evidence" suggests they are principals, not employers, says employment lawyer Brad Swebeck.
An HR manager has been fined in the Federal Magistrates Court, in a case that sends "a clear message" about HR's obligations to provide employment advice, says Hicksons partner Brad Swebeck.
Too many employers put their "heads in the sand" when in doubt about the clarity of their contracting arrangements, but it's far better to "crystallise their liability", says employment lawyer Brad Swebeck.
The Fair Work Act and some recent caselaw have made engaging contractors less attractive than it used to be, according to Kemp Strang senior associate, Nick Noonan.
Knowledge gaps in contractor management issues have the potential to expose medium-to-large companies to serious financial risks, says payroll tax specialist Stacey Nolan.
The "adverse action" provisions under the new industrial relations legislation will compel employers to be more cautious when making decisions that affect employees, according to workplace lawyer Alex Manos.
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