Share on LinkedInShare on LinkedIn

ARTICLE · 17 MAY 2017

When are advisors held accountable for underpayment of wages by clients?

An accounting practice was held responsible for underpayments by a client for whom it was providing payroll services.

AustraliaEmployment and HR

The role of accountants and bookkeepers has been in particular focus following this month's Court decision holding an accounting practice responsible for underpayments by a client for whom it was providing payroll services. The decision follows a series of prosecutions and decisions in which principal contractors, franchisers, and human resources professionals have been found to be legally "involved" in breaches by an employer of the Fair Work Act and therefore liable for penalties and compensation.

Natalie James, the Fair Work Ombudsman, has been unequivocal that the FWO has and will continue to adventurously test the limits of the accessorial liability provision in the Fair Work Act. The FWO's drive to bring accessories within the scope of prosecutions is, in part, because many of the employers they prosecute are no longer solvent. Speaking in July last year, Ms James reported that in the 2015/16 financial year 92% of prosecutions brought by the FWO

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from