Home – New Forums Money matters Client wants to backcharge Workcover premium to me

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  • #979088
    Wodnee
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    Hi Soloists,
    Wondering if any learned folk could shed some opinion on my dilemma.
    I have for over 3 yrs contracted to one company to do their architectural repping. The arrangement has been I get paid x per visit to architect or builder & a % of monthly turnover.
    At the outset I was advised that I didn’t need a workcover policy as I didn’t empoy anyone nor pay wages in excess of $7500 p.a.
    My client has recently gone through some ructions with their accounting & been slapped with a substantial workcover premium.
    They are now pointing to me as my invoiced fees being a part of their “total renumeration” upon which their premium was calculated & trying to backcharge me around $4,000 for what they deem to be “my” part of their Workcover bill.
    Unfortunately the market is pretty depressed at present so telling them to shove their contract is not an option.
    I don’t believe however that I was ever covered by their Workcover policy & therefore don’t see why I should pay for it.
    Any views?

    #1111874
    Divert To Mobile
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    Does this also mean that they in turn owe you 3 years worth of super contributions?
    Hopefully someone more HR qualified could clarify.

    But the problem sounds like the proverbial all eggs in one basket scenario. If you don’t bend they drop you and they’re your major income source.
    Is it worth paying 4k to keep them and can you accept that?

    Steve

    #1111875
    John C.
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    I agree with the last post – if they want to back charge you for Workcover premiums, they should also back pay you for holiday pay, sick leave, superannuation, long service, etc, etc. It seems they are trying to get their cake and eat it too!

    As the last poster said though, you really need to decide whether it’s worth fighting for. If you’ve already decided that you can’t tell them to shove their contract, and they know it, then you’ve lost the battle before you’ve even begun.

    Good luck.

    Cheers,
    John

    #1111876
    rmis
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    Hi Wodnee,

    What state are you (a) located in; and (b) perform your work?

    #1111877
    Wodnee
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    Hi rmis

    all Victoria

    #1111878
    rmis
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    We predominantly handle NSW Workers Comp but I have had a quick look for you:

    Depending on the type of contract you were engaged in, you may be a ‘deemed worker or employee’ under workers comp legislation. This means, that although the principal doesn’t pay you super, take out tax etc they may have a workers comp premium liability for you.

    My suggestion would be to go to the Worksafe Victoria website and look at the ‘information for employers’ guide under the ‘insurance’ tab. Different rules apply to different states but this will be give you an idea of whether you will fall under a deemed worker status – worksafe can also provide a ruling to the principal to get it sorted out.

    Hope this helps.

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