Participants (such as Councils) within a labour supply chain may be held legally responsible if their principal contractors or subcontractors are not complying with the Fair Work legislation where it can be demonstrated that they had a role to play in those breaches of the law.
That is, it is not just employers who can be held liable for contraventions such as underpayments but also any persons knowingly involved in contraventions may also be found legally responsible. A range of accessories have been held liable in actions taken by the FWO including individuals (accountants, managers, directors, lawyers) or businesses involved in the supply chain. This is known as accessorial liability42, and falls under section 550 [s550] of the FW Act, which provides that a person who is ‘knowingly involved in’ a contravention of a civil remedy provision is taken to have contravened that provision, and is exposed to penalties and other orders flowing from that contravention. A person is ‘involved in’ a contravention if they:
aided, abetted, counselled, procured or induced the contravention
conspired with others to effect the contravention
were in any way, by act or omission, directly or indirectly, knowingly concerned in or party to the contravention.