In brief - What are the ABCC's investigative powers and what do building industry participants need to consider?
In the face of an investigation by the Australian Building and Construction Commission
(ABCC), building industry participants should be aware of the specific powers of the ABCC and the benefits that may arise from adopting a strategic approach in managing their involvement in an investigation.
Although it may appear that the ABCC is focused on the misconduct of unions, it is important to note that all building industry participants may be required to participate in, or be the subject of, an ABCC investigation.
In the most recent reporting period (ending March 2018), the ABCC had 81 open investigations nationally. Of those, employers were the subject of 44 investigations.
Investigative powers of the ABCC
- wages and entitlements
- sham contracting
- freedom of association
- right of entry
- unlawful industrial action
- adverse action
The intentional obstruction or hindrance of an ABCC Inspector in the performance of their functions may result in significant penalties (up to $210,000 for a body corporate and $42,000 for an individual).
As a result, it is important that building industry participants ensure that ABCC investigations are managed appropriately and that they seek advice and assistance at an early stage.
Dealing with an investigation by the ABCC
Typically, an ABCC Inspector will notify a building industry participant that they are conducting an investigation. At that point they may informally request documents, information or witness statements.
While your first instinct may be to voluntarily comply with such requests, there may be significant industrial, legal strategic advantage in not complying with an informal request but rather waiting for such requests to be formalised.
If an informal request is not accommodated then an ABCC Inspector may serve a Notice to Produce Documents.
A notice must be in writing (in the required form), served on a building industry participant, and require the production of documents. A building industry participant has at least 14 days to produce the documents.
The notice must specify the matter to which production relates, with sufficient particularity to permit a building industry participant to ascertain the relationship between what is sought and the matter which is being investigated. A notice may be void if it does not show that the particular production is within the authority of an Inspector to require (Construction Forestry Mining and Energy Union v Alfred  FCA 591
A building industry participant is only required to produce the documents that are specifically listed in the notice. A building industry participant may also consider redacting from the documents any irrelevant information.
The ABCC also has the power to serve an examination notice requiring the production of documents, information, or the attendance of a person to answer questions before the ABC Commissioner.
There are very strict requirements that the ABCC must comply with in issuing an examination notice. The agency is also required to notify and report to the Commonwealth Ombudsman regarding an examination notice.
Importantly, the BCIIP Act (section 103
) extends a protection from liability for building industry participants who give information, produce documents or records or answers questions which they are required to respond to under an examination notice (ie. if they are compelled to answer questions). The protection afforded by the BCIIP Act in relation to compliance with examination notices extends to "any information, document or thing obtained as a direct or indirect consequence of giving the information or answer…" (section 102(2)(b)
of the BCIIP Act).
This power seems to be rarely used by the ABCC, with only six examination notices issued in two investigations between January to March 2018.
Attend the premises and require the production of documents
In the event that an ABCC Inspector enters the premises of a building industry participant, they may exercise certain powers, including inspecting documents or interviewing a person.
Before entering the premises (or as soon as practicable after entering), the ABCC Inspector must show his or her identity card. It is also important that they be inducted onto site (for safety reasons) and that they be accompanied if they want to inspect any area of the site.
Building industry participants should consider training staff and seek legal advice when faced with an ABCC investigation
There are considerable risks and costs associated with managing ABCC investigations. We recommend that building industry participants train staff to ensure they are aware of their rights and obligations under the BCIIP Act. Building industry participants should seek specific legal advice in dealing with ABCC investigations as soon as they commence.
This article has been published by Colin Biggers & Paisley for information and education purposes only and is a general summary of the topic(s) presented. This article is not specific legal or financial advice. Please seek your own legal or financial advice for any questions you may have. All information contained in this article is subject to change. Colin Biggers & Paisley cannot be held responsible for any liability whatsoever, or for any loss howsoever arising from any reliance upon the contents of this article.