New submitter evolutionary writes: Plutus Payroll, an Australian payroll company, is refusing to pay contractors due to a dispute with companies using their services. Around 1,000 IT workers are unable to receive payment for services rendered. One may ask, “Where are the companies who actually hired the IT workers?” The Register reports: “This story starts with Australia’s employment laws, which see lots of contractors officially employed by recruitment companies or payroll companies. The company at which the contractor works likes this arrangement as it means they don’t have to put such people on their books. Recruitment companies and payroll companies charge for the service. Contractors generally like the convenience of having one employer even though they hop from gig to gig. The system requires fluid payments. Companies who hire contractors pay the recruiter, which either pays contractors direct or pays the payroll company contractors prefer. If the cash stops flowing, contractors get crunched. That’s what’s happened to around 1,000 contractors who elected to use Plutus as their paymasters: the company says it is in the midst of a completely unexplained ‘dispute’ that leaves it unable to pay contractors, or receive money from recruitment companies, but is still solvent. The Register has checked with the bank that Plutus clients say sends them their money — the bank says it is aware of no dispute. One possible reason for the mess is that Plutus did not charge for its services. How it made money is therefore a mystery. Another scenario concerns the company’s recent acquisition: perhaps its new owners are being denied access to some service Plutus could access as a standalone company. Plutus is saying nothing of substance about the situation. A spokesperson tells us the company deeply regrets the situation but won’t divulge anything about the dispute and has offered no details about when contractors can expect resolution.”
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