Important News Regarding Workers Compensation for Contractors

Important News Regarding Workers Compensation for Contractors ACT Government recent change to contractors, recruitment firms and payroll company liabilities
Recent changes were made by the ACT Government regarding workers compensation. Unsure if this effects you or what you need to do now? Read on for a quick rundown.

What are the changes that have been made?

State Government has been looking at Workers Compensation insurance claims and has decided that payroll companies cannot be classed as the employer for independent contractors using the payroll function on contract through a recruitment agency. The onus therefore comes back to the recruitment company who set up the contract to ensure their contractors, including independent contractors using third-party payroll services, have appropriate workers compensation cover.

Who does this effect?

Contractors, recruitment firms and payroll companies. For many recruitment agencies, particularly those traditionally in the IT space who have sought to outsource their payroll functions and thus avoid the insurance costs, they will no longer be able to do this. Payroll companies should not be deducting monies from independent contractors for workers compensation insurance. 

How will this affect contractors?

Independent contractors should make sure the recruitment agency who has put them on contract has provided for them in their workers compensation policy so they are not left high and dry should an accident occur. Although HorizonOne only has a very small group of Independent Contractors, we do this already.

What do employers need to know?

Employers should ensure that they work with recruitment agencies who have this issue covered. This is so they do not potentially end up liable in any action should an accident occur and if the contractor involved struggles to get cover from their recruitment firm. 

Where can I find more information?

Check out the APSCO website or contact them to find out more.