ARTICLE · 14 MAY 2017

Professional service providers, risk management and accessorial liability under the Fair Work Act - 10 May 2017

HopgoodGanim

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Persons involved in a contravention of a civil remedy provision of the Act can be held liable as an accessory.

AustraliaEmployment and HR

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On 28 April 2017, the Federal Circuit Court of Australia ruled for the first time that a professional services provider (an accountancy firm) should be held liable as an accessory for the unpaid award wages contraventions of its employer client.

The decision in Fair Work Ombudsman v Blue Impression Pty Ltd & Ors ¹ has since attracted prominent media attention and raised concerns that professionals will now be more frequently and unreasonably held responsible by the regulator, the Fair Work Ombudsman, for the labour practices (and sins) of their clients under the accessorial liability provisions in the Fair Work Act 2009 (Cth) (Act).

Senior Associate, Damon King discusses the reasons for the decision, and, particularly, whether it poses greater risk management consequences for professional advisory and other services providers to national system employers under the Act.

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