With a greater number of businesses downsizing we are seeing a growing trend towards outsourcing specialist activities to independent contractors. This model allows the business to effectively deliver specialist tasks; however, it introduces different types of risks to the business around the engagement and management of contracted workers.
Under the Work Health and Safety Act 2011 (WHS Act), a contractor is defined as a worker and is owed duties by the person conducting a business or undertaking (PCBU). When a business engages a contractor (also a PCBU) to perform a scope of work, it is essential that effective contractor procurement and management processes are, firstly, in place; and secondly, followed, to ensure the risks to both parties are managed. Integrating health and safety requirements into contractor procurement and management is an effective method of aligning operational and WHS needs.
GCG have worked with a number of businesses who engage contractors to develop contractor management systems that: