The Office of the Australian Building and Construction Commissioner (ABCC) has become aware that some NSW contractors and subcontractors have been incorrectly advised about their accident insurance obligations.
The CFMEU has sent letters to contractors and subcontractors informing them that they are not complying with "industry standards" by not paying for Top-Up 24-hour accident insurance. The letter is headed "Compliance with your Enterprise Bargaining Agreement".
It appears this letter has been sent to some contractors and subcontractors who are under no obligation to make Top-Up payments.
Some building industry participants may be required to pay Top-Up insurance under a certified or CFMEU collective agreement or as a condition of contract.
However, contractors or subcontractors not bound by such an agreement are under no obligation to make Top-Up payments.
Any legal obligation must be complied with. Building industry participants should exercise care when assessing whether or not they are under any obligation to make Top-Up payments.
Building industry participants may request assistance or advice about this matter from their industry association or from the ABCC on 1800 003 338.