Contracts and Offset Clauses.

All contracts of employment should contain an Offset Clause. This is necessary as a result of a High Court decision rejecting an appeal by an employer against the Federal Court ruling that in effect enabled the employees concerned to ” Double Dip “.
The fact that the employer had made payments to the employees was ruled irrelevant as the contract of employment did not specify that payments made under the existing contract were to be included in settlement of any future claims by employees.
In this day and age employers who utilise Independent Contractors and Sub Contractors should also include an Offset Clause to ensure the payments made pursuant to the contract are taken into account when and if any future claim is made. Given the level of Sham Contracting that is occurring with resulting legal actions it is imperative to include the following clause.
” All monies paid to you pursuant to this contract can be taken to offset against any claims of underpayment in the future “

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