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My husband, as the Director of the company and only employee

 
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  • Answered by:Sydney-Lawyer
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Customer Question

My husband, as the Director of the company and only employee has a sickness and disability insurance policy. The company to whom he contracts wants him to have a policy covered by WorkCover.
WorkCover only covers you to and from the job, whereas the policy he has also covers him if he were to break a leg at home.
Can they legitimatley withhold jobs from us and not pay us the rate they were offering if we agreed to their contract terms.

 

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State/Territory: Qld

Already Tried:
I have tried communicating but it is done through the Brisbane office, we are not allowed to contact the Financial Controller directly in Sydney. Here is the last message i understand what you are saying, but as perversity stated work place injure insurance cover is what is required to work for and be paid the new rate for doors plus, witch you have not got therefore wont be paid this rate, there is no arguments with this.

Submitted: 336 days and 13 hours ago.
Category: Australia Law
Value: AU$84
Status: CLOSED
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Expert:  Sydney-Lawyer replied 336 days and 13 hours ago.

Good Afternoon


Workcover covers you from the time you leave home until you return home.

If you have an accident at work it covers you.

He should also have workcover as it is compulsory under the law for all companies that have employees.

It is not relevant that he is the director. he is an employee and has to be covered.

Depending on what the agreement he has with them says will determine what they can and cannot do. If he is required to have all employees covered then he must have the insurance otherwise he is in breach of the agreement with them and they do not have to honour it.

I hope this is of assistance and if so please click on the accept button.



Customer replied 336 days and 13 hours ago.

WorkCover in Queensland do not cover the directors of companies, even if they are an employee.

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Expert:  Sydney-Lawyer replied 336 days and 7 hours ago.

Good Evening


Does your husband have income protection and TPD insurance?

Have you spoken with the other company about it not being possible for your husband to be covered?


Customer replied 335 days and 11 hours ago.

The following is the response I have received from them even after sending them an extract from WorkCover stating that they do cover directors and explaining we already have income protection, with a sickness and accident policy that covers us 24/7 unlike WorkCover.

 

Karen, i dont no how i can make this anymore clearer, the fact of the matter is it dose not matter to us what insurance you already have, we require you to have the one we asked for to be payed the new rate and become one of our preferred fitters. we have spoken to our lawyers and we have every right to ask for this. Scott last night got this insurance even though he had the same insurance as you, so there is no excuses. i will not be replying to email re this matter as there is nothing more to discuss on this matter

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Expert:  Sydney-Lawyer replied 335 days and 10 hours ago.

Good Afternoon,


There's really very little I can say to you.

There's no law against you getting the workers compensation insurance as it does not set out who was covered on the certificate of currency.

If you want your husband covered my only suggestion to you is he resign from being a director and you take its place and he can solid be a shareholder/employee. This way he would be covered.

You can cover him as an employee this way. If things stay as they are and you take out workers compensation insurance laws and will not be covered by you will have satisfied the requirement of having workcover.

Their e-mail is quite specific no workcover, no work.

I hope this is of assistance and if so please click on the accept button.

Customer replied 334 days and 21 hours ago.

Your answer has not addressed the real question?

 

Are they legally able to force us to take up a policy which you have now acknowledged is nothing short of a waste of money as no there is no cover?

Accepted Answer

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Expert:  Sydney-Lawyer replied 334 days and 20 hours ago.

Good Afternoon


No they cant force you to do anything.

The issue is the contract you have signed with them. If you agreed to provide the insurance you are bound to do it or you are in breach.

It is a matter where you need to speak with their Solicitor because this is the only person they are listening too. You need to ask them to provide you with their details.

If you do not resolve this issue they do not have to give you work because you have not complied with the agreement. They can use this as a valid reason to not give you work.

As I mentioned there are ways around it but if you are not prepared to make changes to your structure then you need to speak with their Solicitor and come to a resolution.

Your issue is the agreement you have signed and what you agreed to provide.

I hope this is of assistance and if so please click on the accept button.

Expert TypeSolicitor
Category: Australia Law
Pos. Feedback: 96.1 %
Accepts: 16624
Answered: 5/9/2012

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

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