Wage Subsidies Obligation to Employment Agency?

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26 September 2014
Hi all. Recently I began my own business, What legal and monetary obligations do I have toward an employment agency in regards to training costs for a new employee and ongoing wages subsidies?

Story: I need another trainer to work with me presenting, was hoping to begin this in Nov but it will now probably begin in late Feb.

My future sub-contractor approached a employment service to see whether they would cover the costs of their training $3500 which I cannot cover. I sent a letter "to whom it may concern" setting out my needs and intention of employing this person.

I received a phone call shortly after from the employment company confirming my details and info in letter and asking whether it was true that I could provide 2 days a week work, I balked at this question as I cannot guarantee this as I need to build my business and find the work first. I rang him and addressed this saying"did he understand my intent was to sub-contract not employ and that there was no prescribed hours as yet?" He acknowledged this and said they, the agency,"just needed to hear some buzz words".

A month ago I had a meeting with the future employee after he suggested a partnership instead, we left the meeting on good terms and had agreed to go our own separate ways and work as sub-contractors to each other in the future, he stated he would pay for the training himself-all employer/employee agreements were off.

I rang him today to check on him, he informed me that the employment agency was paying for his training in October, when I questioned this saying,"what does that mean?" he said "don't worry, we will just have to cook the books"

Obviously I am freaked out, I have had no correspondence since the phone call from the employment agency, I have just rung them and they have already paid for the training and said I have no obligation, however they expect to get a start date from me and they expect me to provide 195 hours of work for him in 13 weeks from that start date. I am very uneasy, is this true and what obligations are there, if any?


LawTap Verified
27 May 2014
You need to send a letter/email to both parties explaining your understanding of the situation and see what develops. Leaving matters till later may make the situation worse for you (ie could cost you money).

Best address these issues now before another party spends money (more money?) on a misunderstanding.
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