A remote workforce expert urges real estate agencies to ensure legal compliance, as a Fair Work ruling highlighted risks in misclassifying offshore workers and using non-compliant contracts.
Following a recent Fair Work Commission ruling, provider of ethical remote staffing solutions Cloudstaff is urging employers to comply with Australian labour laws to avoid potential legal consequences.
In September last year, Joanna Pascua, a Filipino remote paralegal worker for a Brisbane company, had taken her employers, the Doessel Group Pty Ltd, to the watchdog commission after having been allegedly dismissed unlawfully.
The commission ruled that Pascua was an employee rather than an independent contractor.
Cloudstaff remote workforce expert and advocate for ethical outsourcing, Paul Findlay, said that the ruling had highlighted the risks associated with misclassifying offshore workers and relying on non-compliant contractor agreements.
“This ruling is a wake-up call. It’s not just about ticking legal boxes, it’s about protecting people and businesses from the long-term consequences of poor hiring practices that put their business and the contractor at risk,” Findlay said.
Cloudstaff said the ruling sets a strong precedent as offshore contractors may be legally deemed employees if they work fixed hours, receive directed pay, or are closely supervised, putting them under Australian workplace law.
“The line between contractor and employee is thinner than many realise. If you’re managing someone’s schedule and output, you may already be on the wrong side of the law,” Findlay said.
While there are no exact figures, a growing number of Australian real estate agencies are turning to offshore or remote teams for roles like admin support, leasing, and property management.
Cloudstaff warned Australian businesses about critical risks, including costly retroactive wages and entitlements from misclassifying workers, legal breaches from direct offshore hires, lack of data and IP protections in freelance arrangements, and compliance failures that could jeopardise funding, M&A, or IPO opportunities.
Founder and CEO of Cloudstaff, Lloyd Ernst, said that businesses that hire informal freelancers not only risk legal damage, but also reputational damage.
“Businesses that hire informal freelancers may be exposing themselves to hidden liabilities, from wage and benefit claims to data breaches and reputational damage,” Ernst said.
“This isn’t just about compliance. It’s about doing the right thing – for your business, your investors, your customers, and the people who work for you, no matter where they are.”
To ensure employers remain compliant, Cloudstaff is offering advisory consultation to Australian companies that directly hire offshore freelancers/contractors.
Cloudstaff said its model guarantees full HR law compliance, handles IT equipment and security, and takes on legal responsibility as the direct employer, ensuring its “#1 workplace everywhere” commitment to culture and team retention worldwide.
“We’ve built Cloudstaff to remove the complexity, reduce the risk, and raise the standard for offshore work,” Ernst said.
“In an era where remote teams are essential, the future of work must be built on a foundation of ethical and sustainable employment,” he concluded.
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