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ARTICLE · 24 AUGUST 2011

Following the boss’ instructions - HR managers beware

A look at a recent Federal Magistrates Court's decision regarding sham contracting.

AustraliaEmployment and HR

In our December 2010 article (see issue 8.12), we discussed the activities of the Fair Work Ombudsman, the independent regulatory agency that investigates complaints involving suspected contraventions of the Fair Work Act 2009 and its predecessor, the Workplace Relations Act 1996, as well as breaches of awards and agreements. Part of the FWO's arsenal includes the capacity to bring Court proceedings seeking the recovery of unpaid entitlements, the reinstatement of employees where appropriate, and the imposition of monetary penalties.

In a recent decision of the Federal Magistrates Court, pecuniary penalties were imposed on a company director and the company's HR manager after both men were found, in a previous judgment, to have been 'knowingly concerned' in the company's contravention of the sham contracting provisions of the Workplace Relations Act 1996 ('WRA 1996'). Under the relevant provisions of the WRA 1996 (which applied in this case), it was unlawful for an

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