Risk Response Plans - a response to changing legislation
The language of worker engagement continues to be front of mind for a number of Business Monitor clients as we move towards traditional financial year end where tax records, superannuation and other reporting requirements often cause questions to be asked by workers or their representatives.
Business Monitor has spoken about misclassification of workers on a number of occasions, but the questions and concerns continue.
Lately the issue has arisen in the professional’s space where agreements made with highly skilled workers in labour-hire arrangements have needed review due to concerns that recent legislative requirements are not being met.
The two sets of amendments to the Fair Work Act as part of the Australian Government’s Closing Loopholes Amendments:
Several companies have contacted Business Monitor to discuss whether their arrangements with contractors and host clients could be viewed as non-compliant under current contracts and the expectations of the parties involved.
This flowed through to annual reporting to a Labour Hire Authority for one client and to the Australian Tax Office for another.
In the case of the two clients mentioned, we had to work backwards to assist in resolving their individual challenges - one with complete success but the second still has a way to go.
Where might the risks be and what is the expected response after frustration, annoyance and sometimes sheer panic abates.
There will often be:
Disaffected workers who believe they are not getting entitlements, fair treatment etc.
Host clients who challenge the arrangements if situations change, despite it being regulatory.
Pressure on providers to do “what I ask” from clients and workers and, by default, often creating a non-compliant arrangement.
These clients both provided a new level of risk awareness and management resulting in the development of a Risk Response Plan for each client that can be used should such issues arise again.
More importantly we are working with these clients to develop manageable Plans for other issues identified as high risk on their company’s Risk Register. Stress reduction for management, stronger support for the workforce and enhanced regulatory compliance - a pretty good outcome for all.
And an exciting new opportunity for us as we launch our personalised Risk Register workshops on the back of these learnings!