Contractor Compliance Audit Checklist for Marketing & Digital Agencies
A checklist for auditing the compliance status of all contractors and external service providers working with your business, covering insurance, licencing, and WHS.
Includes provisions for Australian Consumer Law (ACL), Privacy Act compliance for customer data, and ACMA spam regulations.
Complete Checklist
- 1Review the contractor register and confirm it is complete and currentCritical
- 2Verify that all contractor public liability insurance policies are currentCritical
- 3Check workers compensation insurance status for contractors who employ staff
- 4Confirm that all required licences and qualifications are current for each contractorCritical
- 5Verify that contractor ABN details are valid and active
- 6Review contractor agreements for currency and completeness of terms
- 7Check that all contractors have completed a current site-specific WHS inductionCritical
- 8Review contractor performance against agreed quality and service standards
- 9Verify that contractor invoicing arrangements are correct for tax purposes
- 10Assess whether any contractor arrangements may constitute a sham contracting risk
- 11Check that contractors are meeting their own WHS obligations on your site
- 12Review any incidents or near-misses involving contractors during the period
- 13Verify that contractors carry their own tools, equipment, and PPE as required
- 14Update the contractor register with any new or changed information
- 15Document the audit findings and follow up on any non-compliance identifiedCritical
Frequently Asked Questions
What happens if a contractor is injured on our premises?
Even though contractors are responsible for their own workers compensation, the business that engages them also has WHS duties. If a contractor is injured due to a hazard you should have controlled, you may face WHS prosecution and civil liability. Ensure all contractors are inducted, hazards are communicated, and safe systems of work are in place. Your public liability insurance may cover third-party injury claims, but prevention is always the priority.
What is the difference between an team member and a contractor under Australian law?
The distinction depends on the totality of the working relationship. Key factors include the degree of control over how work is performed, whether the worker is integrated into the business, whether they provide their own tools and equipment, whether they can delegate or subcontract, and the financial and commercial risk they bear. Misclassifying an team member as a contractor is known as sham contracting and carries significant penalties.
What insurance should we require from contractors?
At minimum, require public liability insurance with a cover amount appropriate to the risk, typically ten to twenty million dollars. If the contractor provides advice or professional services, require professional indemnity insurance. If they employ workers, they must have workers compensation insurance. For high-risk work, consider requiring additional coverages. Verify policies are current before each engagement.
Need help implementing these checks into your daily operations?
Our team can build custom checklists integrated into your daily operations workflow.