Question: What is the difference between an on-site manager subcontracting duties or having an employee? How should contracted working-hour limits work?
Can you clarify the difference between “subcontracting” and having an employee?
The Management Agreement includes:
“The Manager may in his discretion subcontract part of his duties of the Manager hereunder provided however that any subcontract shall not diminish the obligations and responsibility of the Manager as herein contained.”
Isn’t the usual concept that an on-site manager (OSM) will undertake most basic duties and tasks themselves, i.e. not delegate them to a third party or employee?
Unfortunately, many employed personnel see their role as “a job” with no “pride in performance”. This creates, in essence, a situation where a “desk jockey” is in charge with almost all duties and tasks delegated. Is there any difference between a “subcontractor” and an “employee”?
How do Management Agreements work when they limit the OSM’s working hours?
The intention that an OSM will regularly inspect the building to check that, say, all common property lights are working, goes out the window. Any half decent OSM will likely embrace the need for a quick walk around, but unfortunately some can’t be bothered. They cite their contracted hours as a justification for not doing so.
Answer: Management rights agreements are contracts, not employment relationships, so who does the work and how many hours they work depends on what’s actually agreed.
There are two issues here:
- Subcontracts, staffing, employees: management rights agreements are contracts, not employment agreements. The management entity is contracted to do the work required by the agreement for the remuneration stated. How they do that work and who does it is subject to the terms of the agreement itself. The clauses in this agreement are somewhat standard, stating that the manager can engage others to do the work at its cost, but it is still accountable for the performance of those so engaged. It’s not dissimilar to engaging a law firm. Someone might come to Redchip via me for advice, and while I might not do all of the work myself, our firm is responsible for delivering the agreed-upon advice and standing by it. Who does the actual work is an internal matter for us.
- Hours: each agreement can be different between hours and days of work. Again, managers are not employees, so aren’t covered by awards and the like for hours. If an agreement said they must be available 24/7, they have to be, but that would be a very rare agreement. There can be a big difference between ‘intention’ (and I would ask whose ‘intention’ do you mean) and what they are actually contracted to do. That’s one for proper legal advice, potentially referencing other less specific duties too.
This post appears in the September 2026 edition of The QLD Strata Magazine.
Frank Higginson
Redchip Strata Law
E: FrankH@redchip.com.au
P: 07 3193 0500
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