Authors: Mark Kenney, Partner, Lara Radik, Special Counsel & Gemma Sweeney, Solicitor
The Queensland Government has introduced the Ethical Supplier Mandate and Ethical Supplier Threshold via changes to its Queensland Procurement Policy to impose tougher standards on government suppliers; the idea being that taxpayer dollars should only be spent on companies doing the right thing by workers through commitment to training, safety and fair wages.
The changes are a direct response to a parliamentary report regarding wage theft (which has coincidentally occurred in the midst of some high profile hospitality wage disputes) and are intended to strengthen the existing Buy Queensland approach which emphasises the government’s responsibility to maximise the social, economic and environmental benefits to the public in relation to procurement.
Ethical Supplier Threshold
Pursuant to c 2.3 of the QPP, the Queensland Government will expect suppliers to comply with the Ethical Supplier Threshold which means the supplier has not:
- contravened a civil remedy provision of ch 2 or ch 3 of the Fair Work Act 2009 (Cth) (Fair Work Act), or committed an offence against the Fair Work Act.
- contravened a civil remedy provision of ch 2, 3, 4, 5, or 7 of the Industrial Relations Act 2016 (Qld) (IRA), or committed an offence against the IRA or failed to pay employment related levies, or other payments, established under Queensland Legislation.
- failed to make superannuation contributions on behalf of employees.
- purported to treat employees as independent contractors, when they are not.
- required persons who would otherwise be employees to provide an Australian Business Number so that they could be treated as independent contractors.
- engaged persons on unpaid work or as unpaid interns, when they should be treated as employees.
- entered into an arrangement for the provision of labour hire services with a person who is not licensed under the Labour Hire Licensing Act 2017 (Qld) (Labour Hire Act), or a supplier who is an unlicensed supplier under the Labour Hire Act.
- paid employees wages below those provided for in an applicable modern award.
Invitation to tender documents will be required to specify that compliance with the Threshold is mandatory. Suppliers will have to include information in tender responses detailing whether they comply, including the history of compliance for the last five years (commencing from 1 August 2019 – the Threshold will not apply retrospectively).
