New code guidelines show no tolerance for illegal practices

New implementation guidelines for the National Code of Practice for the Construction Industry will make the process of tendering for government-funded building works much simpler, Bill Shorten, Minister for Employment and Workplace Relations, said in a media statement releasing the guidelines. The new guidelines will also provide increased protection for Australian employees.

In the foreword to the guidelines, Minister Shorten said that the updated version reflects the original intent of the 1997 code, which was to “lift the behavioural standards of the industry and to secure compliance with all legal obligations and ethical tendering requirements”.

Given the Australian Government’s position as a major procurer of building and construction services, Minister Shorten said that it “can and will” affect industry behaviour in order to strengthen the industry and support productivity, jobs and investment.

The guidelines reflect the Fair Work Act 2009, Minister Shorten said, and show no tolerance for companies or individuals who break the law. He said that the guidelines spell out employers’ responsibilities, particularly in relation to sham contracting and employing non-residents.

“Employers found to have engaged in the practice of sham contracting will be considered to have committed a fundamental breach of the guidelines. Furthermore, employers must ensure that those engaged in the performance of construction work are lawfully entitled to work under Australian law.”

He added that organisations that break the law may be precluded from tendering for government-funded work in the future.

Minister Shorten released the updated version of the guidelines on 2 March 2012. They will take effect on 1 May 2012.