On this page you will find important information that directly affects head contractors.
The Building and Construction Industry Improvement Act 2005 (BCII Act) forms part of the government’s national approach to workplace relations reform. The purpose of the BCII Act is to ensure that building work is carried out fairly, efficiently and productively for the benefit of all building industry participants and the Australian economy as a whole.
What is my Role?
As a head contractor you have a legal obligation to ensure that the sites and projects you manage operate in a lawful manner. You must be aware of the legal rights and obligations of building industry participants, as well as state and federal best practice standards.
What are my responsibilities?
It is your responsibility to inform your subcontractors and employees of their obligations and to ensure they comply with laws and guidelines across all building sites under your management.
What are the penalties for unlawful conduct under the BCII Act?
The BCII Act provides for substantial penalties including monetary penalties of up to $110,000, and compensation to persons who have suffered loss.
What kind of conduct is unlawful?
Contraventions identified in the BCII Act include:
- Coercion and intimidation on building sites;
- Coercion in agreement making;
- Denying employees and contractors freedom to choose to belong, or not belong, to a union or industrial association;
- Paying workers who are on strike; and
- Non-compliance with ABCC notices.
Can the ABCC assist me?
ABCC staff are available to assist you over the phone or in person at your preferred location. They are able to offer a range of information and services including:
- Detailed information about your rights and responsibilities as a building industry participant;
- Meet with your subcontractors and employees to increase awareness on site of best practice standards and legal rights and obligations;
- Pursue complaints about alleged misconduct and, where appropriate, launch formal investigations; and
- Explain the implications of the BCII Act, the Workplace Relations Act 1996 (WR Act) and the Independent Contractors Act 2006 (IC Act) for your business.
The ABCC can also intervene in applications made by a building industry participant to the AIRC or a court. The ABC Commissioner generally intervenes to ensure that the parties, the AIRC and the courts are aware of the impact of relevant federal legislation on the case. The ABC Commissioner may argue that the AIRC or court should make a particular order, such as an order that workers on strike return to work.
Notifications to the Australian Building and Construction Commissioner
Building industry participants must notify the ABC Commissioner, as soon as practicable, when they make or are otherwise involved in an application made to a court under the BCII Act, the WR Act or section 34 of the IC Act and the proceedings relate to building work. If you fail to notify the ABCC you are liable for a penalty of:
- up to $2750 if you are a body corporate.
- up to $550 in any other case.
Notifications to the ABCC should be faxed to: 03) 8509 3023. Enquiries should be directed to Eugene Quigley - Advocate, ABCC on: 03) 8509 3011. For more information please visit our Notifications to the ABCC page.
Issues of particular importance to head contractors:
- Independent Contractors
Head Contractors are responsible for ensuring that independent contractors engaged by them are genuine independent contractors and not employees.
Under independent contractors legislation, employers are prohibited from misrepresenting an employment relationship as an independent contracting arrangement and a penalty of up to $33,000 may be imposed for any breach.
Penalties of up to $33,000 will also apply to employers dismissing, or threatening to dismiss, an individual in order to rehire him or her as an independent contractor. Penalties will also apply for employers knowingly making false statements to persuade an employee to become an independent contractor to perform essentially the same work.
In addition, the legislation provides for a court to review services contracts and to strike them out, or re-write them, if they are found to be unfair.
Further information regarding independent contractors legislation can be found on the Fact Sheets page.
If you are in doubt as to the status of a worker on your site, we suggest that you take specialist advice. An Independent Contractors Hotline is available from 8am – 6pm (Eastern Standard Time) Monday to Friday – 1300 667 850 or Contact Us.
- Freedom of Association (FOA)
In Australia, every employee is free to join, or not join, a union. Equally, every employer is free to join, or not join, an employer association. It is illegal to try to force anyone into joining, or not joining, a union or an employer association.
For more information, please read our fact sheet Freedom of Association in the Building and Construction Industry, available on our Fact Sheets page.
- Choice of Agreement
A contractor and their employees are free to select the type of workplace agreement they consider most suited to their circumstances. The types of agreement available under the WR Act are: - Australian Workplace Agreement
- Employee collective agreement
- Union collective agreement
- Employer greenfields agreement
- Union greenfields agreement
- Multiple business agreement
Project Agreements
A project agreement is used to establish common terms and conditions of employment for workers and subcontractors on a site. Please refer to our detailed
Project Agreements FAQs for more information.
Coercion interferes with a party’s freedom of choice and can result in civil penalties being imposed under the BCII Act. Persons or organisations engaging in action, or making threats with intent to coerce another, are liable to be the subject of penalty proceedings.
It is illegal to take, or threaten to take, action with intent to coerce or apply undue pressure to a person to make an agreement.
- Right of Entry
Call the Workplace Infoline on 1300 363 264 for more information on Right of Entry.
- National Code of Practice for the Construction Industry
The National Code is a set of principles for best practice in workplace relations, occupational health and safety, procurement and security for payment. The obligations involved in satisfying the National Code are set out in accompanying Implementation Guidelines (PDF 636KB).
The National Code has been endorsed by the federal government and all state governments. You should apply the principles of the National Code and Guidelines to ensure that your site operates on best practice values. From 1 November 2005, all companies, and entities engaged by companies, wishing to work on Australian Government construction projects must comply with the National Code and Implementation Guidelines on all their construction projects, including those that are privately funded.
For more information about National Code compliance or to download the National Code and other relevant documents please visit the National Code page on this website.
The ABCC has created a number of fact sheets that offer specific information and legislative advice. Please contact us if you require further information that is not available on this website.