What is ACCESSORIAL LIABILITY and how or when can it impact employers?
Understanding and managing your supply chain helps identify and then to protect your business from the potential impact of accessorial liability.
For example, businesses can be held legally responsible if their labour hire contractor (or subcontractor) is underpaying their staff. It’s not just direct employers who can be held liable for contraventions such as underpayments – any person knowingly involved in contraventions could be found legally responsible. Accessorial liability could extend to directors, managers, accountants or businesses involved in the ‘supply chain’.