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I am secretary of our ex.committee, live on the premises of our strata complex and wish to take over maintenance of lawns and garden (common property) for a monthly fee. I am most unhappy with the current lawn mowing service and parts of the common property are not looked after at all. Would this be a conflict of interest (committee member being paid) or above board with approval of other committee members?
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This is very different from being paid as a member of the EC and the important thing is to have complete transparency. Put together a proposal of what you would do, how many hours a week you would spend and how much it would cost and make it very easy for the EC to dispense with your services if they are unhappy at any time.
Make your case to the EC but then absent yourself from the meeting when this is being discussed and voted on (as a matter of courtesy, rather than any legal requirement) and let the committee decide.
If they say yes, then if any whingers start up, you can honestly say that this was democratic, transparent and utterly fair and if they have any problem with your work, the EC can sack you.
By the way, the benefits of having someone in-house doing the work must be obvious to all concerned, but someone will always have a problem with arrangements like this, so be prepared. Otherwise, go for it!
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Jimmy has provided some sound advice, and if you get the job, you will also need to consider that whilst working in the way that you propose is clearly with the best of intent, it gives rise to some obligations that your current Contractor would have addressed by taking out Public Liability and Workers’ Compensation Insurance, and by providing your Owners Corporation with Tax Invoices so that your Plan’s Accounts can satisfy an audit.
It may in fact be easier for you to use the relevant Provisions of the Legislation that covers the management of strata plans in your State to enable you to be paid as an Executive Committee (EC) Member.
As an example, Sect.25 of the NSW Strata Schemes Management Act (1996) enables members of an Executive Committee to be paid “in recognition of their services to the Owners Corporation…”.
The fact that “services” is not defined is advantageous, but the disadvantage is that payments made in this way have to be determined at a AGM, and only then for services provided since the previous AGM.
So if you opted for this methodology, you would have to work for 12 months before being paid, but then again, your O/C’s Insurance may cover you as a voluntary worker if you sustained an injury during that pre-payment period.
I think you need to do some more homework, but good luck with your initiative!
When I have offered to do work for our OC (I'm on the EC) – our management has stated that I'd need an ABN and Public Liability insurance.
From what's happening in our strata block I will be against any maintenance by owners or EC members. Why? Conflict of interest. It is nothing but an easy way to recover your strata levies and as long as you can keep a majority happy or have “friends” in the EC who is to question whether you are doing a good job or not? What is there to prevent others EC members from enjoying the “share”?
I take your point, which is why I suggested total transparency and an easy way of having the employment terminated. If an EC member is playing favourites, then the Owners Corporation can overturn the decision at an AGM.
And yes, I know that these things can be manipulated by block proxy voting etc etc. But in my experience nothing quite pulls out the vote like telling owners they are being ripped off.
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Our strata insurance has “volunteer” cover. Therefore, we have believed that should any owner/resident volunteer to do something around the complex they would be covered. However, once you start paying them, they wouldn't be volunteers would they? If an owner/resident did work around a complex, and was paid for their services, therefore not a volunteer anymore, and they were not a business with their own insurance, nor a qualified tradesperson with coverage, would strata insurance necessarily cover them? And if a strata complex “employed” the services of a resident/owner should they not check that they this resident has adequate insurance to carry out any paid work in the complex? I know that our SM advises us that should we decide to use someone to carry out maintenance in the complex (other than from their approved list of tradespeople) then the onus is on us to check that they have insurances (and licences).
struggler said:
I know that our SM advises us that should we decide to use someone to carry out maintenance in the complex (other than from their approved list of tradespeople) then the onus is on us to check that they have insurances (and licences).
same here but I read somewhere that EC members can be fined upto 1.85 million as at the end of the day it is the OC (EC) who are responsible for making sure. But I also read that the responsibility also lies with the SM. Perhaps someone can throw some light on this.
Fined $1.85 million for what and by whom?
Not disputing your assertion but we need more details – a reference to a wesbite would be great.
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JimmyT said:
Fined $1.85 million for what and by whom?
Not disputing your assertion but we need more details – a reference to a wesbite would be great.
https://www.workcover.nsw.gov.au/aboutus/newsroom/Pages/companyfinedafterworkercrushed.aspx
https://www.legislation.nsw.gov.au/maintop/view/inforce/subordleg+648+2001+cd+0+N
https://www.nationalohsreview.gov.au/NR/rdonlyres/C600AB52-C983-49DD-9EDA-4C9E781B1B8D/0/198ISTM.pdf
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are all interesting reading. So you may have to get legal advice if you want an owner to do property maintenance. Sorry I did not have the time to read all this information but I believe it is all relevant the OHS regulation in NSW at least,
struggler said:
Our strata insurance has “volunteer” cover. Therefore, we have believed that should any owner/resident volunteer to do something around the complex they would be covered. However, once you start paying them, they wouldn’t be volunteers would they? If an owner/resident did work around a complex, and was paid for their services, therefore not a volunteer anymore, and they were not a business with their own insurance, nor a qualified tradesperson with coverage, would strata insurance necessarily cover them? .
The “strata insurance” would have to include a Workers Compensation Policy to cover anyone who is engaged as an an “employee”. Depending on how much is paid in wages, there may be a liability for PAYE tax deductions and Superannuation as well. I don’t think ATO takes too kindly to people who take out ABNs just to get paid for mowing their own lawns.
bpositive said:
JimmyT said:
Fined $1.85 million for what and by whom?
Not disputing your assertion but we need more details – a reference to a wesbite would be great.
https://www.workcover.nsw.gov.au/aboutus/newsroom/Pages/companyfinedafterworkercrushed.aspx
https://www.legislation.nsw.gov.au/maintop/view/inforce/subordleg+648+2001+cd+0+N
https://www.nationalohsreview.gov.au/NR/rdonlyres/C600AB52-C983-49DD-9EDA-4C9E781B1B8D/0/198ISTM.pdf
/archives/237
are all interesting reading. So you may have to get legal advice if you want an owner to do property maintenance. Sorry I did not have the time to read all this information but I believe it is all relevant the OHS regulation in NSW at least,
How funny to find myself quoted when I asked for a reference.
This is an excellent set of documents amd I might find a separate home for these for easy reference. Well done BP!
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