What are above-entitlement payments?

‘Above-entitlement payments’ refers to any payment or benefit that is above the amount or value of a payment or benefit required to be paid under a Commonwealth industrial instrument or industrial law within the meaning outlined in the FW Act.

What’s required of me regarding above-entitlement payments?

There are several requirements that a code covered entity must abide by in order to comply with the Code and the FW Act. We’ve outlined these for you below.

A code covered entity must not:

  • organise or take, or threaten to organise or take, action with intent to coerce a contractor, subcontractor or consultant into making an above-entitlement payment in respect of building work
  • exert undue influence or undue pressure on a contractor, subcontractor or consultant to make an above-entitlement payment in respect of building work
  • organise or take, or threaten to organise or take, action with intent to coerce a contractor, subcontractor or consultant into contributing to a particular fund or scheme, or supporting a particular product, service or arrangement
  • apply, or attempt to apply, undue influence or undue pressure on a person to contribute to a particular fund or scheme, or to support a particular product, service or arrangement.

For example, if you’re a building contractor, you are prohibited from placing undue pressure on a subcontractor to select a particular income protection insurance scheme or to make use of a particular training provider.