Head contractors often hold more power than subcontractors, which can lead to unfair payment terms and risky contracts for smaller businesses. This imbalance means subcontractors are often left waiting too long for payments and dealing with unfair conditions.
Now, more than ever, subcontractors in the electrical industry need stronger protections in place to ensure fair treatment. With the workforce already stretched thin, it’s time to bring balance to contracting terms and ensure subcontractors get the fairness they deserve.
The Victorian Parliament recently inquired into employers and contractors who refuse to pay their subcontractors for completed works.
This inquiry scored major wins for subcontractors, including:
- Maximum payment term of 25 business days
- Allow government to recognise and nullify unfair contract terms
- Extension on time limit payment claims being made from 3 months to 6 months.
MEA is leading the charge to secure stronger legal protections for subcontractors all across Australia, helping to level the playing field in contract negotiations by addressing the power imbalance.
Changes MEA is advocating for include:
- Ensuring subcontractors get paid for their completed work, regardless of the head contractor’s progress
- Making it easier to spot any changes to a standard industry contract
- Ensuring subcontractors are paid for delays outside their control – with government projects setting the example
- State laws should ensure that any contract terms deemed unfair at the federal level are also considered unfair locally
Read more about MEA’s unfair contract terms advocacy campaign to better protect you as subcontractors.
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