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Legislative Assembly for the ACT: 2001 Week 10 Hansard (28 August) . . Page.. 3477 ..
9.
Clause 4
Proposed notes about part 1B
Proposed note 1
Page 6-
Omit "part", substitute "chapter".10.
Clause 4
Proposed notes about part 1B
Proposed note 2
Page 7, lines 2 and 11-
Omit "part", substitute "chapter".11.
Clause 4
Proposed notes about part 1B
Proposed note 3
Page 7, line 17-
Omit the note, substitute the following note:Note 3 Subcontracting and labour hire (effect of s 5AA)
The Act applies in a special way to subcontracting arrangements, by which-
- a worker is engaged to work for a person who is the employer of the worker (under this chapter); and
- the employer has engaged the worker to fulfil a contract the employer has with someone else (in this note, a principal) to do work for the principal's trade or business.
Under s 5AA, the principal is liable to pay compensation to the worker if the worker is injured. The principal may, however, recover the compensation paid from the employer.
These situations may be complicated by the involvement of labour hirers, who may in some circumstances be taken to be the employer of workers engaged to do work for a principal (see s 5). Here are 3 illustrations of different subcontracting arrangements:
Arrangement 1 No labour hirer
A bricklayer's labourer (the worker ) is employed by a bricklayer (the employer ) to assist the bricklayer to fulfil a contract between the bricklayer and a builder (the principal ).
The bricklayer is the labourer's employer.
Arrangement 2 Labour hirer as employer
A cleaner (the worker ) is engaged by a labour hirer (the employer ) to fulfil a contract between the labour hirer and the owner of a retail store (the principal ) for the cleaning of the store. The labour hirer is taken (under s 5) to be the employer of the cleaner, because the cleaner has no contractual relationship with the owner of the store.
The labour hirer is the cleaner's employer.
Arrangement 3 Labour hirer as employment agent
A keyboard operator (the worker ) is employed by an information technology consultant (the employer ) to fulfil a contract between the consultant and a government department (the principal ). The consultant recruits the operator through a labour hirer acting as an employment agent.
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