Case Study: Non-Compliant Sole Trader Registering Employees
Smartek - Contractor & Compliance Management Software
A supplier /contractor for one of our valued clients who had registered on Smartek as a sole trader commenced registering employees in accordance with the client’s requirements.
The Smartek team verified his sole trader status through an ABN check and subsequently called this supplier to enquire as to why he was registering staff if he was a sole trader.
The supplier responded that he was a sole trader and on occasions he used friends and acquaintances to assist with labour and other services provided to this client.
As a sole trader there was no requirement for workers compensation and it could not be determined if the other insurances of this supplier covered these workers. A check of available insurance documentation confirmed that these friends/ acquaintances may not be covered in the event of an incident.
Furthermore, it could not be determined if these friends/acquaintances were trained to the duties that he allocated them at client sites and if they were covered in a Safe Work Method Statement.
Further discussion revealed that these friends/acquaintances were not subject to police clearances to attend this client’s site which is a mandatory employee compliance for the client required by regulation.
Therefore, although not intentional, the supplier was placing the client at a foreseeable risk of negligence and brand damage through their non-compliant practices.
The Smartek team assisted this supplier through the compliance process to ensure that he was compliant as practically possible based on the information that he had provided and had an discussion to inform him of the client’s compliance obligations and potential concerns around these practices. The Smartek team were able to assist this supplier to reach and maintain a level of compliance in accordance with the client’s requirements and his sole trader status.
The supplier was encouraged to contact our mutual client and commence an informed mature discussion with them relevant to his use of friends/acquaintances for labour to ensure a mutually beneficial arrangement in accordance with their risk tolerance.
Learn more about what Smartek Contractor and Compliance Software can do for your organisation here.
Blayne Webb, Director, Barringtons