Avoid personal fines for accessorial liability

Workforce Guardian HR solutions can help you avoid prosecution for accessorial liability if your company, employer or client breaches the Fair Work Act.

Over 90% of all litigations commenced by the Fair Work Ombudsman last financial year sought orders against accessories (Eg. A director of a business or a key advisor, such as a HR manager, payroll officer, accountant or bookkeeper).

If you fail to correctly explain the rules to your employer, make it clear when they are in danger of breaking them or become involved in breaches of the law yourself you risk being held personally liable under Section 550 of the Fair Work Act 2009.

Are you at risk of personal fines?

Employers often rely on key advisors to:

  • Assist with aspects of HR and/or payroll processing
  • Provide advice about employee Modern Awards classifications, pay rates, penalties, loadings, the National Employment Standards (NES), or other Fair Work-related entitlements
  • Assist with labour hire arrangements through a supply chain or franchise network
  • Provide advice about independent contractor arrangements
  • Generally, explain the rules and make it clear when they are in danger of breaking them

Accessorial liability issues for individuals often arise in relation to breaches of the National Employment Standards (NES), sham contracting, underpayments, adverse action and discrimination. 

Even relatively minor actions can result in a person being held accessorily liable. For example, a failure to give written notice of dismissal before dismissing a person from their employment would contravene the Fair Work Act 2009. The employer and any person involved in the contravention could then face prosecution by the Fair Work Ombudsman.

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