We recognise that the global outsourcing landscape is changin —fast. Recent legal decisions in Australia have uncovered major risks for Australian businesses when engaging offshore workers in ways that fall outside proper employment protections.
In July this year, a remote worker based in the Philippines, performing regular hours for an Australian business, was found by the Fair Work Commission (FWC) to be an employee and entitled to Australia’s workplace protection —even though she was offshore.
We believe in a different approach—one that puts people first, ensures compliance, and offers Australian companies a safe, ethical outsourcing partner.
At ILBS, we act as the Employer of Record for our offshore teams in Sri Lanka. What that means is:
- We employ the team members locally in Sri Lanka under Sri Lankan employment law,
- We pay them above the Sri Lankan award or typical wage in that market,
- We ensure the employees’ rights and conditions are up to high-standards, aligned with Australia’s modern employment expectations,
- And we give Australian companies the outsourcing advantage—but without carrying the legal risk of mis-classification or under-entitlement.
How does this work in practice? Let’s walk through the benefits and structure:
1. Employment + payment:
We hire the staff ourselves in Sri Lanka, pay them salaries that are competitive (and higher than the local minimum/award) so that they’re fairly remunerated. We take care of payroll, local labour law compliance, benefits, and worker rights.
2. Rights + protections:
Because we treat the staff as employees (not casual contractors or ambiguous “off-shore” contractors) they receive appropriate rights — such as leave entitlements, protections against unfair dismissal, correct treatment of hours and conditions. This means we help mitigate the kinds of risk flagged for Australian contractors.
3. Risk mitigation for Australian businesses:
From the Australian business’ perspective: when you engage us, you avoid the uncertainty of whether an offshore worker
might be deemed an Australian employee, or whether minimum wage/award obligations apply. The last thing we want is for
you to discover a claim or back-wages liability years later.
4. Ethical outsourcing + quality outcome:
From the Australian business’ perspective: when you engage us, you avoid the uncertainty of whether an offshore worker might be deemed an Australian employee, or whether minimum wage/award obligations apply. The last thing we want is for you to discover a claim or back-wages liability years later.
Here are some typical scenarios:
- A mid-sized Australian business wants to outsource customer service, back-office administration, or paralegal/clerical tasks offshore to reduce cost—but wants to do so responsibly.
- You engage us, we supply the Sri Lankan team, we manage employment and compliance. You focus on your business, they focus on your tasks, and you have peace of mind.
- If you scale up, we handle the hiring, onboarding, employment admin; you scale faster but keep control of quality and output.
From a compliance viewpoint, here’s a summary of how we help you stay on the right side of things:
- We ensure alignment with Australia’s expectations regarding employment rights—even when staff are located abroad. (As the FWC shows, location alone does not guarantee you’re outside Australian protections.)
- We ensure off-boarding, termination, and employment contracts are handled properly—no grey-zones of ‘contractor’ when an employee relationship exists.
- We maintain robust documentation, audits, and our process sets out the roles, hours, payments, entitlements clearly—as you would expect for quality outsourced operations.
- And because we pay above the Sri Lankan award/typical wage, we’re not cutting corners—or exposing you to reputational or regulatory risks tied to worker exploitation.
We’re proud of our team in Sri Lanka. Skilled, reliable, engaged—and treated with respect. They operate during Australian
business hours so you get alignment and continuity. Because they’re true employees, we invest in their training, wellness, and
long-term retention. That gives you consistency, lower turnover, and higher quality.
In short: If you’re considering offshore outsourcing, don’t let cost savings blind you to hidden risks. The evolving legal environment in Australia means offshore workers might have more protections—and hence businesses might face significant liabilities if arrangements aren’t structured carefully.
Partner with us, and you get: a compliant, ethical, scalable offshore employment model; Australian-standard operational
alignment; and the peace of mind that your outsourcing partner takes on the employment and compliance load.
If you’d like to explore how we can work together, talk to us at InvestLab Business Solutions — we’d love to find the right team
for your needs, so you can focus on growth while we handle the employment mechanics.