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Accountant liable as third-party accessory to client’s underpaymets

Underpayment of wages & liabilities

Professional advisors who “close their eyes” to their client’s contravention of the Fair Work Act 2009 (Cth) run the risk of being held accessorially liable.

To avoid being “involved” in a contravention of the Fair Work Act 2009, directors of accounting firms should seek Employment advice on behalf of their client to ensure employment arrangements are legally compliant.

In Fair Work Ombudsman v Blue Impression Pty Ltd & Ors [2017], the Federal Circuit Court held an accounting firm liable for an employer’s underpayment of wages and breaches of the Fair Work Act 2009.

The accounting firm Ezy Accounting 123 Pty Ltd, faces up to a maximum of $51,000 per contravention, and there were 6 contraventions, totalling $306,000 in penalties for failing to ensure its client correctly classified workers under the correct Modern Award.

What can you do to reduce your risk as an Employer or Accountant/Bookkeeper?

Make sure you know which workplace laws apply. The only way to be sure is to seek advice from experienced, competent Employment Advisors at ISOsafe.

This decision was a timely reminder to accountants and other advisors that they may face accessorial liability under the Fair Work Act 2009 if they acquire knowledge of facts which give rise to contraventions. Contact ISOsafe today to review your ensure your Employment arrangements comply – 1300 789 13