Avoid sham contracting (s 357 Fair Work Act)
Employer must not misrepresent employment as contractor relationship.
Who must comply
All employers.
What triggers it
Engaging worker as contractor when relationship is in substance employment.
When due
Continuous.
Evidence required
Contract documentation; worker status analysis; multi-factor test review.
Max penalty
Civil penalty for individuals + corporations; underpayment recovery; tax + super exposure
Summary
Sections 357-359 Fair Work Act prohibit sham contracting — misrepresenting an employment relationship as an independent contractor relationship, dismissing for the purpose of contracting, knowing misrepresentation.
Enforced by
Source legislation
Topics
Source: https://fairwork.gov.au/employment-conditions/independent-contractors/sham-contracting. Rules Mate is not a law firm. Always verify against the live regulator source before acting.