Andrew Douglas will present on "Why my contractor is killing me" at the upcoming Queensland safety Conference. He will discuss the concept of "lazy operational management syndrome", which refers to businesses improperly classifying employees as contractors or casual staff to avoid responsibilities. This practice provides no real cost savings but substantial legal and safety risks. Key takeaways will be that casual or contract labor should only be used for fluctuating or project work, and ongoing improper classification of employees exposes businesses to risk of penalties and liability.

1. Q&A
WITH
AndreW douglAs
Andrew douglas, Principal
Macpherson + Kelley
day 2 - Contract & Contractor Management
10.30am-11.10am
Why my contractor is killing me
sIA:
You are a speaker on day 2 ‘Contract & Contractor Management’ for the upcoming Queensland safety Conference
where you will present ‘Why my contractor is killing me’ where you will discuss the governance, organisational and
workplace law implications surrounding the use of contractors as a result of lazy operational management syndrome.
Can you explain what ‘lazy operational management syndrome’ is?
Andrew:
Historically, Australian operation managers have used casual employees, labour hire or individual contractors with
an ABn to fulfil seasonal fluctuations within business. A practice has emerged over the last ten years to use these
people as a cheaper more flexible form of labour than employees. That is because there was low administrative
costs in engaging the people, low termination risks, they do not appear head count at budget time, and for many
years, did not have risks associated with workers’ compensation, oHs and other taxing legislation. That time has now
changed. governments have changed legislation to deem these people employees in many circumstances. There
are now large numbers of businesses that engage people who have a continuing expectation of engagement, whose
work behaviour is controlled by the host employer and to all intents and purposes are employees. Two recent cases
have made it clear the tribunals and courts will look through the label of someone described in a contract as a casual
employee or a contractor and determine what the true relationship is.
For employers, that means penalties, back pay of entitlements, for many years and other taxing and statute liability.
Further, the oHs liabilities for these people is identical to being an employee, workers compensation liabilities are
identical (including return to work) but the safety risks associated with casual labour or contractors are significantly
higher. These casuals, labour hire employees and contractors are a disenfranchised part of the workplace. That is,
they are not part of the core business, they do not belong to the core business and they do not believe in the core
business. Their inductions, training and supervision in respect of safety are at times peripheral and therefore they
pose the highest safety risk of any employees on site.

2. Q&A
WITH
AndreW douglAs
Andrew douglas, Principal
Macpherson + Kelley
day 2 - Contract & Contractor Management
10.30am-11.10am
Why my contractor is killing me
lazy operational management syndrome is the maintenance of this group of people within the workforce when
there is no operational benefit, no cost saving, only substantial oHs risk. The operations managers are lazy because
the reason why these people were engaged was to manage fluctuations in work. They are now part of the normal
workforce but described as something different. The result for business is substantial - Ir risk, employment risk,
workers’ compensation and oHs risk.
sIA:
Why do you believe so many organisations get it wrong?
Andrew:
There is a political divide that sits across employment/Ir where one group of employers believe a casual/contractor
workforce provides flexibility and money savings. The belief is that this method of engagement provides the
business with the capacity to manage change in a cheap and efficient process and one that is without risk. The
political language that sits around this does not reflect the legislative and case law reality. As described above, there
are few cost savings, if any, but very substantial risks that attach in all areas of workplace and taxation law.
sIA:
What will be a key takeaway for delegates attending your session?
Andrew:
Casual and contractor labour is essentially only for either high fluctuating seasonal work or external skills that
are needed for a specific project. The continued use of casual and contract labour to augment the permanent
employment group of business is based on a business and legal folly which exposes business to substantial legal
risk and human risk in the workplace. There is absolutely no doubt that the safety of permanent employees is
significantly better than casuals/contractors. It is only through induction, training and the imbedding of company
values that employees become safe. Casual/contractors do not share the attributes of permanent employees
engaged in the values of a business. Their capability is not tested through the vigorous recruitment processes
involved in the recruitment of permanent employees. Therefore, even if they are inducted and trained in the

3. Q&A
WITH
AndreW douglAs
Andrew douglas, Principal
Macpherson + Kelley
day 2 - Contract & Contractor Management
10.30am-11.10am
Why my contractor is killing me
same manner - their behaviours and capability will be more variable and create greater risk for themselves and the
business. simply put, do you really need this casual or contractor or is this casual/contractor really an employee. If
they are an employee, have the courage to engage them and bring them into the business as part of the business.
Casuals and contractors by definition do not receive the same induction, training and engagement with business
values.