3.4.5 Direct payees
3.4.5.1 Determine a direct payee | 3.4.5.2 Ceased employers | 3.4.5.3 Compliant active employers | 3.4.5.4 Refer non-compliant employers to WorkSafe | 3.4.5.5 Taxation of direct payees
Employers are responsible for paying workers their weekly payment entitlement.
There are circumstances, however, in which a worker can become a direct payee of an Agent.
Workers may become direct payees when they have:
- ceased employers
- active employers (in exceptional circumstances)
- non complying employers
- provided their agreement to become a direct payee.
Agents must assess each application on its merits.
See: Ceased employers | Compliant active employers | Determine a direct payee
3.4.5.1 Determine a direct payee
A worker or employer can apply to an Agent for the worker to become a direct payee and the Agent will determine the request based on the specific criteria below.
When an employer submits a request for the worker to become a direct payee, the employer must seek the worker's agreement to become a direct payee before the employer submits the request to the Agent.
Alternatively, an Agent may determine to make a worker a direct payee based on the specific criteria below without any specific request being made from an employer or a worker. In this case, the Agent should also seek to consult with the worker, and if possible the employer, before making a determination.
In making any determination whether to make a worker a direct payee, the Agent should consider any preferences expressed by the worker and/or the employer, but is not bound to follow them in making the determination.
In all of the above circumstances, Agents should encourage the worker to talk to their employer if they have enquiries concerning their employment benefits, such as leave entitlements.
Agents are required to place a detailed file note on ACCtion to document the reasons for making a worker a direct payee, using CL09 code DRTV - direct payee review.
Non-compliant active employers
A non-compliant active employer is an employer who fails to make weekly payments within the legislative timeframes. When an Agent becomes aware of a non-compliant active employer (i.e. via a complaint) they follow the steps below.