Institute of Certified Bookkeepers
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October 2014 Question of the Month

  • 83 posts
  • # 102087

My client is a NFP entity. There is a board of management (all volunteers) and one paid worker, a contractor. I have just been engaged to review their accounts and have a number of concerns relating to the worker. He has been engaged as a contractor when it is very clear that he should have been an employee from day one. Even though he has been a “contractor”, he has been paid 4 weeks of annual leave every year and is also paid for sick leave. So it seems he has been engaged as an employee in all but super and PAYG matters. Also I have checked the award that he would be governed by, and he has been paid at a much higher rate.

My concerns:

  1. The contractor is the only paid worker - who is the “boss” when it seems to be a team of volunteers?
  2. He is demanding that superannuation be paid for the last 3 years of her engagement - how far back should the employer go for calculating what is owed?
  3. If we pay his super, is this enough to satisfy FairWork if he approaches FW about his entitlements given that he was also paid for leave during the period of his service? (And that he has been paid at a rate better than the award?)
  4. The management committee have advised me that the position is no longer required - can the worker pursue the employer for unfair dismissal and entitlements if the position is made redundant and the worker disagrees with the decision?

What should I do?

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