If it's to good to be true

If Your Labour Hire Contract Seems Too Good to Be True, It Is

Working with the best labour hire agencies can help Australian companies in multiple ways. However, if you get caught up in a contract that seems too good to be true, then it probably is. The latest scam in Australia today revolves around payroll processing companies not passing along payroll taxes to the Australian Tax Office. These companies are receiving the payroll tax from the employers who signed the contract, but keeping the money for themselves instead.


Obviously, this causes many different issues for employers, such as having to pay even more money to satisfy their tax liabilities while trying to recover the money paid to the illegitimate payroll processor. Innocent workers in labour hire jobs can also be impacted by the scam, since they are still employed by the employer being scammed. This latest scam is just another reason why employers need to do their due diligence before signing any contract with labour hire companies.


Importance of Using A Reputable Labour Hire Agency

If an employer does not look into labour hire companies diligently, then they could end up funding a company that’s stealing from the Australian government. Despite their efforts, the employer may have to pay double payroll taxes, since the government has to have their money, regardless of where it comes from. Many employers spend their time and effort recovering their scammed money, but sometimes the payroll processor has already vanished.


How To Protect Your Organisation

The best way to protect your organisation is to do extensive research on a labour hire agency before signing a contract. This research could involve online searches, visiting an office, asking for referrals and more. You can never be too safe or take too much time when finding the right agency to fill your labour hire jobs. Not only will you benefit from it, but your employees and the government will as well.


Always Do Your Due Diligence

Even if you’ve already hired a labour hire agency, it’s never too late to dig a little deeper to find out more information about them. Start by asking for proof that they paid the government the payroll taxes. If something seems sketchy, then contact the government directly to confirm all payroll taxes have been received. And if you ever are approached by a labour hire company that turns out to be a scam, notify the Australian government immediately to prevent the company from scamming someone else.

As labour hire jobs in Australia expect to increase over the next several years, many different scams like this will also arise. It’s up to the employer to do their due diligence upfront to protect themselves, their employees and the government from being scammed. The best thing you can do is find a reputable labour hire agency with a proven track record to work with. Don’t hesitate to contact us to get started.

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