Introduction: A Wake-Up Call for Outsourcing Businesses
In June 2025, a significant decision by the Fair Work Commission (FWC) highlighted some key considerations related to enterprise agreements, independent contractors, and individuals undertaking remote work, particularly those offshore.
Joanna Pascua, a Filipino paralegal working remotely for an Australian company, successfully challenged her dismissal and won the right to Australian workplace protections [1]. In this case, it seems that adherence to Philippine Law was secondary to that of Australian Law.
This ruling is more than a legal milestone. It’s a wake-up call for employers outsourcing staff through intermediaries or on direct contracts without local employment infrastructure. When it comes to remote work, offshore workers and agreements, Australian Law matters.
Employing offshore workers (employees) is becoming more and more common, given the squeeze on the labour market. Ensuring workers receive fair pay, the right health and safety structures are in place, and any agreement signed is fully compliant is important to ensure the Fair Work Ombudsman doesn’t get involved.
Why This Case Matters
If you engage offshore staff (employees), through informal arrangements, unstructured providers or hiring companies, this case could have implications for you as an employer. It’s not just about having a formal employment agreement, making sure pay is above the minimum or flexible working arrangements anymore.
The Fair Work Act is making things trickier for businesses with remote workers, and it’s forcing everyone to rethink how they manage their teams. Independent contractor or not, these individuals may have the same protections as employees when it comes to unfair dismissal, minimum pay rates, annual leave, health and safety (including mental health), as well as general protections.
In short, remote staff could be considered employees working for your business, and therefore have the same rights protected in the same way as a person employed directly onshore.
Meet Joanna Pascua
Joanna Pascua worked from her home in Metro Manila for a Brisbane-based credit repair firm. Her role involved liaising with Australian banks and credit agencies, investigating credit claims, and supporting clients of an Australian-based legal firm [1].
Despite being paid significantly more than the minimum wage in the Philippines, the focus of Fair Work also included the hours worked (she was expected to work Australian business hours) and the expectation that she follow Australian protocols (as employees would be expected to).
When she was dismissed for a breach of contract, which she disputed, she filed an unfair dismissal claim with the Fair Work Commission.
Offshore Doesn’t Mean Out of Reach
The Fair Work Commission ruled that Pascua was entitled to Australian workplace protections under the national employment standards.
Why? Because her work was deeply integrated with an Australian business, and she operated under Australian management and systems [1].
In this case, it appears the Fair Work Commission viewed Joanna as an employee and the credit repair firm as an employer.
This ruling confirms that Australian employment law can apply to offshore (remote) workers if there’s a “sufficient connection” to Australia. This doesn’t mean that the worker is required to be a permanent employee, permanent resident, have any dealings with the Australian Taxation Office, have met work visa requirements for Australia or be considered a migrant of Australia under the Migration Act.
The consideration of who the employer of the staff member is becomes critical. Any enterprise agreement or employment contract should outline specifics, such as pay, annual leave, health and safety, unfair dismissal and obligations of the employer and staff member.
It is also important that any agreement outlines specifically who the employer of the staff member is, which is where a compliant and structured relationship with an experienced outsource partner becomes critically important.
How employment law is applied to offshore workers in this case had a lot to do with the structure that was in place.
Small business needs to be particularly aware of this case as they are unlikely to have access to the same resources, contacts or be fully aware of changes in employment law, to manage any disputes or concerns related to their obligations under an enterprise agreement or the Fair Work Act.
The Hidden Risks
One of the main drivers for engaging in outsourcing is cost efficiency. But without a structured framework, there are risks;
- Legal liability
- Compliance breaches
- Reputational damage
- Employee dissatisfaction and turnover
Are You Protected?
If your offshore staff are hired through an intermediary without a local presence or if you contract them directly, you may be operating in an environment that opens the door to investigation by the Fair Work Commission, and the staff member may be considered an employee.
The Illusion of Distance
A common assumption is that because their staff are overseas, local laws don’t apply. Joanna’s case proves otherwise. Distance doesn’t dissolve responsibility, nor does the absence of enterprise agreements.
What This Means
An employer of direct employees could be liable for:
- Unfair dismissal claims
- Underpayment disputes
- Breaches of workplace safety laws
- Superannuation and leave entitlements
The Fair Work Commission doesn’t focus on workers’ personal circumstances, and Joanna’s story is a perfect example of that.
Structured Outsourcing: A Smarter Approach
At OBS we help businesses build structured, compliant, and ethical outsourcing models that protect both the company and the staff.
It’s about finding the right people for the job and your business, while ensuring that all employment obligations are met.
Structured outsourcing means:
- Local legal compliance – Employer of Record
- Transparent contracts
- Fair pay and benefits
- Clear communication channels
- Compliant HR and payroll systems
- Fully maintained equipment.
Why OBS?
OBS specialises in helping businesses engage in responsible outsourcing services. We operate with local partners to secure the best offshore workers while ensuring compliance and cultural alignment.
Benefits of Partnering with OBS
- Employer of Record: OBS’ Philippine entity is the employer of the staff, and we ensure full adherence to labour laws.
- Operational Efficiency: We handle HR, payroll, and compliance so you can focus on growth.
- Employee Satisfaction: Happy staff are productive staff. We help you build loyalty and reduce turnover.
From Risk to Resilience
We’ve helped dozens of businesses transition from relaxed, ad-hoc outsourcing to structured, scalable models. The result? Lower risk, higher retention, more engaged workers, and better business outcomes.
We don’t just “place” staff. We build teams. Our local presence in offshore markets means we understand the legal, cultural, and operational nuances that others miss.
How OBS Works with You
- Assessment: We review your current outsourcing model.
- Design: We create a compliant, scalable structure.
- Implementation: We provide everything to get your staff member up and running.
- Ongoing Support: We manage HR, payroll, and compliance.
Offshore Doesn’t Mean Offhand
Your offshore team is part of your business. Treating them with the same structure as your employees would expect is the strategic way to embed outsourcing.
As you maintain full direct operational management of the worker, it’s almost as if the staff member were employed directly by you.
Compliance Isn’t Optional Anymore
Joanna’s case shows that employees’ entitlements are as important overseas as they are in Australia, the US, UK or any other country. Employers need to ensure that workers are provided with the same protections that any employee could reasonably expect.
Driving a hard deal, ignoring health and safety, training requirements or thinking that ignoring workplace norms that were previously established by union contracts isn’t a viable long-term solution.
If a staff member challenged your employment practices tomorrow, would you be ready? If not, it’s time to contact OBS.
Joanna Pascua’s case is a turning point. It’s time to rethink how we outsource. With OBS, you can do it right.
Ready to Talk?
If you’re outsourcing or thinking about it, let’s talk. OBS can help you build a model that’s compliant, efficient, and built to last.
Visit obsupport.biz to schedule a free consultation. Let’s build something better—together.
