Engaging an offshore Virtual Assistant, it’s simple, right?!
- 3 days ago
- 2 min read
Author: Laura Regan, Senior HR Consultant
Looking for an extra set of hands with your administrative function?
Engaging offshore workers has become increasingly common for Australian businesses, given the squeeze on the current labour market. Offshore workers may be attractive to your business for a variety of reasons, including cost, efficiency and flexibility advantages.
Many of these arrangements are set in an independent contracting agreement applying between the offshore worker, and the Australian business.
If you have a written contract, it should be simple, right?
Unfortunately, not.
Recent case law reminds of complexity
A recent case before the Fair Work Commission highlighted the importance of ensuring overseas contracting arrangements continue to meet Australian legal and compliance requirements.
In this case a paralegal working remotely from the Philippines for an Australian company, successfully challenged her dismissal. Essentially the Commission determined that her arrangement was aligned to that of an employee, and the employee became entitled to compensation for their dismissal, also opening the door for employer liability for back payment of employee wages and conditions to meet Australian standards.
How to minimise your risk
Australian ‘sham contracting’ laws and associated penalties are so strong, that it is important that the employment relationship is clearly defined from the outset to minimise any risk of underpayment, and potential wage theft claims.
As a starting point when seeking to engage offshore workers, an Employer of Record (EOR) can be sourced. EOR's are a third-party organisation that legally employ workers on behalf of another business. An EOR will be the official employer of the worker, and will carry all the legal and administrative risk which is related to employment in the home country in which the worker is located. As the client of the EOR you will pay the EOR for all costs associated with engagement of the work, and direct the workers on their day to day work.
Another option is to ensure your independent contracting arrangements are so watertight that it meets all the requirements of the Fair Work Act 2009 (FW Act). Notably, this can be particularly hard for workers that are engaged on a labour only basis, and not for a specific project or task.
As another alternative, you can seek to employ the worker in accordance with Australian law, which means meeting the requirements of the FW Act, the applicable modern award, payment of superannuation, insurances, PAYG, as you would employing a worker ordinarily in Australia.
What now?
Engaging contractors, and workers is complicated stuff.
The HR Cartel team are here to help! We can:
Chat out your current arrangements; and
Provide expert guidance on how to minimise your risk.
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