Labor has promised to preserve paycheques for tradies on Government projects if their employer goes bust.

The opposition’s latest pre-election pledge is called the ‘Tradie Pay Guarantee’, and aims to ensure businesses down the supply chain to get paid on time.

It would allow subcontractors to be paid what is owed to them even if the business running the project goes under.

Labor says it would be combined with a $7 million ‘Tradie Litigation Fund’ for taking “dodgy bosses” to court.

“Not only will this give tradies their day in court, it will also act both as a punishment and deterrent for dodgy directors,” the party’s statement said.

“People who deliberately burn their companies should be subject to the full consequences of failing directors’ duties, including being liable for compensation, fines of up to $200,000 or five years behind bars.”