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The Security Industry 'Claytons' Award (Read 9319 times)
Reply #2 - 13. Apr 2011 at 23:38

Administrator   Offline
Dob in a Dodgy Operator

Gender: male
Posts: 1003
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There was a time and still is where a shonky security company paid cash in hand.   This they thought was the way to reduce costs and defraud the Australian Taxation Office.   The 'employee' was happy because he/she ended up with cash equal to a pay packet minus tax.  Also because the 'employee' did not appear on the books the 'employer' did not have to take out worker's compensation insurance.

Under this arrangement, the short sighted 'employee' was defrauded when he needed to take days off when sick or when he needed to take paid holidays.   If the 'employee' complained to authorities then where was the evidence he/she had been employed at all?

'Employees' being paid cash in hand constantly take the risk that their jobs will disappear when some disgruntled current or former 'employee' reports the shonky operator to the tax department.   'Employees' in this situation are not liable for the unpaid tax, the 'employer' is and this is why the 'employer' files for bankruptcy and lays off the workers.

The shonky security companies woke up to this fact and now put the liability for paying tax onto the employee because working under an Australian Business Number the employee is effectively a 'contractor'.   This means that the shonky security company does not have pay sick leave and holiday pay.   When the shonky security company pays the 'contractor', all payments are credited against the 'contractor's' ABN.   This means that the Australian Taxation Office knows exactly what the 'contractor' has received in payments from the shonky security company.

The 'contractor' is liable for income tax owed plus the Goods and Services Tax of 10%.   The 'contractor' is required to submit a Business Activity Statement every 3 months.  Some 'contractors' believe that this money is cash in the hand and do not declare it.   The Australian Taxation Office sits patiently until until the amount of tax accrued by the 'contractor' makes it worthwhile taking the 'contractor' to court.   It is the 'contractor' this time that files for bankruptcy and the Australian Tax Office steps in and seizes the 'contractor's' assets and sells them to recoup the income tax and GST.  

The 'employee/contractor' got dudded again.Grin Grin Grin Grin

Don't let them employ you under an Australian Bunny Number

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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Reply #1 - 13. Apr 2011 at 18:53

spike   Offline
High Level Contributor
Workers Unite

Posts: 108
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Hi Auther

You are by the definations listed in your job contract as you posted, by the Fair Work Act you are an employee.

As such all the Award provisions including the National Employment Standards Apply.

Therefore is no need to supply a ABN, as there are many interpertations by the ATO and Federal and State Industrial Commission Decisions that would determined that you are a employee and not a contractor.

The Workplace Ombudsman Web page can assist you further.

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13. Apr 2011 at 17:26

Arthur   Offline
High Level Contributor
Workers Unite

Posts: 80
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It all looks ok to start. It pays Award wages but then you need an ABN. Does award 'negotiable' mean we'll pay you more or less? I'm starting to see these more and more  where the guard has to get their own ABN but for award rates. No mention of needing a master licence! And from a government subsidised employment agency.
[i]Security Guard


LOCATION: SINGLETON ESSENTIAL: 1A Security license Provisional license will be accepted-however if successful must complete all modules within 3 months Current Senior First Aid Certificate ABN Current Drivers License and own reliable vehicle Be available on a 24/7 day roster Duties: Gatehouse and static arm work Award wage but negotiable depending on experience Hours 35+ per week




Salary: Award
Work type: Full time position, 35 hours or more per week
Tenancy: Permanent, 6+ months

Hours: 40-60
Number of positions: 6

Preferred licences: Car
Source: Employment service provider
Job ID: 216098011
Last modified: 13 April 2011
Options: None
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