Government to pay legal fees after ABCC head Nigel Hadgkiss resigns

The Turnbull government will pick up the legal costs for the former head of the building watchdog, who resigned after he admitted to contravening the Fair Work Act.

The government confirmed on Wednesday night that legal assistance would be provided to Nigel Hadgkiss in accordance with normal practice.

While the legal costs will be covered, a spokesman for the employment minister Michaelia Cash said Hadgkiss had “neither sought nor received any indemnification against any penalty that may be ordered by the court”.

It is possible he could apply for indemnification once the court proceedings move forward.

Cash announced Hadgkiss’s decision to leave the Australian Building and Construction Commission before a civil penalty hearing in the federal court on Friday.

“The government thanks Mr Hadgkiss for his service and wishes him well in his future endeavours,” she said in a statement on Wednesday.

In court documents, reported in the Australian, Hadgkiss admitted that in December 2013 he directed that Labor government changes to right-of-entry laws – which were due to come into effect in January 2014 – not be published by the agency.

The Coalition won the federal election in September 2013, promising to repeal the laws.

Hadgkiss met two senior staff on 19 December 2013, directing no changes be made to agency educational material to reflect the law because he believed it would be changed.

Unions had called for Hadgkiss to be sacked over the incident for not upholding the laws he was authorised to enforce.

Hadgkiss admitted to contravening section 503(1) of the Fair Work Act, which says a person must not take action with the intention of giving the impression, “or reckless as to whether the impression is given, that the doing of a thing is authorised” when it is not.

In Senate question time on Wednesday, Cash told the chamber she had first become aware of the behaviour “in October 2016”.

Labor’s workplace spokesman, Brendan O’Connor, said Cash needed to come clean about what she knew.

“Given minister Cash has known about Nigel Hadgkiss’ breach of the law since October 2016, she must come clean and explain why she failed to stand him down,” O’Connor said.

“For nearly a year after learning about the law-breaking behaviour of her hand-picked appointment to the Australian Building and Construction Commission, minister Cash stood by him and took no action.

“Minister Cash must now explain how he could have been in breach of section 503 of the Fair Work Act for almost three years, apparently without her knowing about it.”

O’Connor said the government needed to take responsibility “and ensure the public that no taxpayer money was used to defend Mr Hadgkiss throughout his controversial time in his position”.

“Mr Hadgkiss has fallen on his sword. Will the minister take responsibility and do the same?”

If Hadgkiss seeks an indemnification, it will contrast with a move by the ABCC to force union officials to pay their own penalties in the event of court actions.

The ABCC successfully applied to the high court earlier this year to set aside an order banning the CFMEU from paying a fine on behalf of one of its officials.

• Australian Associated Press contributed to this report