In an embarrassing decision for the former Napthine Government, the Fair Work Ombudsman has asked the formerly named Department of State Development and Business Innovation (DSDBI) to urgently review the way it engages workers after CPSU allegations about sham contracting exposed dubious labour engagement processes.  A fourteen month investigation by the FWO revealed DSDBI might be "misclassifying" employees as independent contractors and has identified a “heightened risk” that in seeking to achieve financial savings, the department may contravene the Fair Work Act.  If found guilty, the department could face fines of up to $51,000 per breach and individual managers could be liable for penalties of up to $10,200 per breach.

FWO recommends DSDBI:

• Conduct a comprehensive review of its labor engagement policies and processes to ensure they comply with federal workplace law,
• Audit all independent contractors recruited through labor-hire agencies who undertake work traditionally performed by public service employees,
• Ensure all workers are receiving their correct wages and entitlements and back-pay any outstanding entitlements it identifies, and
• Obtain legal advice regarding the use of independent contractors for work traditionally performed by public servants.

All our members who provided confidential information to assist the investigation are to be congratulated and we all look forward to our colleagues receiving all their entitlements and back-pay.

"You can judge a Government by the way it treats its own workers", Karen Batt.