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INDUSTRIAL LAW REFORM (FAIR WORK) ACT 2005 (NO 3 OF 2005) - SECT 46

46—Insertion of new Part

After section 99 insert:

Part 3A—Outworkers

Division 1—Preliminary

99A—Interpretation

In this Part—

"apparent responsible contractor"—see section 99D;

"code of practice" means the code of practice in operation under Division 2 (if any);

"remuneration" includes—

            (a)         any remuneration or other amount, including Commission, payable in relation to work done by an outworker;

            (b)         any amount payable to an outworker in respect of annual leave or long service leave;

            (c)         any amount for which an outworker is entitled to be reimbursed or compensated for under the code of practice;

"unpaid remuneration" means remuneration that is the subject of a claim under section 99D.

99B—Responsible contractors

        (1)         Subject to this section, a person will be taken to be a responsible contractor in relation to an outworker or a group of outworkers engaged (or previously engaged) under a contract of employment with someone else if the person is a person who initiates an order for the relevant work (other than (if relevant) as a purchaser at the point of sale by retail), or distributes the relevant work (even though there may then be a series of contracts before the work is actually performed by the outworker or outworkers).

        (2)         The fact that a person is to be taken to be a responsible contractor for the purposes of this Part does not affect any obligation of another person as an employer under a contract of employment.

        (3)         A person whose sole business in connection with the clothing industry is the sale of clothing (and associated items) by retail will not be taken to be a responsible contractor under this section (but may be taken to be an employer under a contract of employment between the person and an outworker).

Division 2—Code of practice

99C—Code of practice

        (1)         The Governor may, by regulation, establish a code of practice for the purpose of ensuring that outworkers are treated fairly in a manner consistent with the objects of this Act.

        (2)         The code of practice may make different provision according to the matters or circumstances to which they are expressed to apply.

        (3)         The code of practice may apply, adopt or incorporate, with or without modification, a standard or other document prepared or published by a body specified in the code, as in force at a particular time or as in force from time to time.

        (4)         A code of practice may—

            (a)         require employers or other persons engaged in an industry, or a sector of an industry, specified or described in the code to adopt the standards of conduct and practice with respect to outworkers set out in the code; and

            (b)         make arrangements relating to the remuneration of outworkers, including by specifying matters for which an outworker is entitled to be reimbursed or compensated for with respect to his or her work or status as an outworker; and

            (c)         make provision to assist outworkers to receive their lawful entitlements; and

            (d)         make such other provision in relation to the work or status of outworkers as the Governor thinks fit.

        (5)         The Commission may make an award incorporating any term of the code of practice or make any other provision to give effect to the code of practice.

        (6)         Subsection (5) does not limit the powers of the Commission to make awards that relate to outworkers under the other provisions of this Act.

        (7)         If there is an inconsistency between an award and the code of practice, the award prevails to the extent of the inconsistency.

Division 3—Recovery of unpaid remuneration

99D—Outworker may initiate a claim against a responsible contractor

        (1)         An outworker may initiate a claim for unpaid remuneration (an "unpaid remuneration claim") against a person identified by the outworker as the person who the outworker believes on reasonable grounds to be a responsible contractor in relation to the outworker (the "apparent responsible contractor ).

        (2)         The unpaid remuneration claim may be for all or any of the remuneration that is payable to the outworker on account of work performed by the outworker that was (or apparently was) initiated or distributed by the apparent responsible contractor (and it does not matter that there may be more than 1 responsible contractor).

        (3)         The unpaid remuneration claim must be made within 6 months after the relevant work is completed by the outworker.

        (4)         The unpaid remuneration claim is to be made by serving a written notice on the apparent responsible contractor that—

            (a)         claims payment of the unpaid remuneration; and

            (b)         sets out the following particulars:

                  (i)         the name of the outworker; and

                  (ii)         the address at which the outworker may be contacted; and

                  (iii)         a description of the work that has been performed; and

                  (iv)         the date or dates on which the work was performed; and

                  (v)         the amount of unpaid remuneration claimed in respect of the work.

        (5)         The particulars set out in the unpaid remuneration claim must be verified by statutory declaration.

        (6)         A claim under this section may only be made in respect of work performed after the commencement of this section.

99E—Liability of apparent responsible contractor on a claim

        (1)         Except as provided by subsection (4), an apparent responsible contractor served with an unpaid remuneration claim is liable for the amount of unpaid remuneration claimed.

        (2)         An apparent responsible contractor may, within 14 days after being served with an unpaid remuneration claim, refer the claim to another person the apparent responsible contractor knows or has reason to believe is the employer of the outworker under this Act (the "designated employer ).

        (3)         An apparent responsible contractor refers an unpaid remuneration claim under subsection (2) by—

            (a)         advising the outworker who has made the claim, in writing, of the name and address of the designated employer; and

            (b)         serving a copy of the claim (a "referred claim") on the actual employer.

        (4)         The apparent responsible contractor is not liable for the whole or any part of an amount of an unpaid remuneration claim for which the designated employer served with a referred claim accepts liability in accordance with section 99F.

99F—Liability of actual employer to which a claim is referred

        (1)         A designated employer served with a referred claim under section 99E may, within 14 days after being served, accept liability for the whole or any part of an amount of unpaid remuneration claimed by paying it to the outworker concerned.

        (2)         A designated employer who accepts liability under subsection (1) must serve notice in writing on the apparent responsible contractor of that acceptance and of the amount paid.

99G—Recovery of amount of unpaid remuneration

        (1)         An amount payable to an outworker by an apparent responsible contractor that is not paid in accordance with the requirements of this Division may be recovered by the outworker as a monetary claim under Chapter 5 Part 2.

        (2)         Sections 165 and 182 will not apply in proceedings brought under this section.

        (3)         In proceedings brought under this section, an order for the apparent responsible contractor to pay the amount claimed must be made unless the apparent responsible contractor satisfies the Court that the work was not performed or that the amount of the claim for the work in the unpaid remuneration claim is not the correct amount in respect of the work.

99H—Ability of responsible contractor to claim contribution or to make deduction

        (1)         If an apparent responsible contractor pays to the outworker concerned the whole or any part of the amount of any unpaid remuneration claim under this Division, the apparent responsible contractor may—

            (a)         recover the amount paid from a related employer; or

            (b)         deduct or set-off the amount paid from or against any amount that the apparent responsible contractor owes to a related employer (whether or not in respect of work that has been carried out by the outworker).

        (2)         For the purposes of subsection (1), a related employer in relation to an apparent responsible contractor is—

            (a)         the actual employer of the outworker concerned; or

            (b)         another responsible contractor whose contractual relationship with the outworker concerned on account of the work performed by the outworker is, when all relevant contractual relationships are considered, closer than the contractual relationship between the apparent responsible contractor and the outworker.

99I—Offence provision

A person must not—

            (a)         by intimidation or by any other act or omission, intentionally hinder or prevent a person from making an unpaid remuneration claim under section 99D; or

            (b)         make a statement that the person knows to be false or misleading in a material particular in any referred claim under section 99E or any notice served for the purposes of section 99F; or

            (c)         serve a referred claim on a person under section 99E that the person does not know, or have reasonable grounds to believe, is an actual employer.

Maximum penalty: $5 000.

99J—Non-derogation

Nothing in this Division—

            (a)         limits or excludes any other right of recovery of remuneration of an outworker, or any liability with respect to payment of remuneration to an outworker (whether arising under this Act or any other Act or law or whether arising by virtue of any award or other industrial instrument or by virtue of an agreement or otherwise); or

            (b)         limits or excludes any right of recovery arising under any other law with respect to any amount of money owed by a responsible contractor to another person.



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