Sham Contracts

In Australia a number of private and public sector businesses endeavour to classify employees as contractors or sub contractors. Generally these situations involve labour hire companies that insist on the "contractors" having an ABN or a corporate entity.

Judicial review

On 2 December 2015 the High Court held in the case of Fair Work Ombudsman v Quest South Perth Holdings Pty Ltd that an employer is prohibited from mis representing to an employee that the employee performs work as an independent contractor under a contract for services with a third party.

In Moffett v Dental Corporation Pty Ltd the Federal Court of Australia held that an independent contractor was entitled to employer superannuation contributions as the services contract was wholly or principally for labour.

State of play in Australia

A large number of people are engaged as contractors by private organisations, state and federal departments. Generally these people have either an ABN or a corporate entity and are engaged via a labour hire or employment agency.

These people perform the same tasks as employees might ordinarily perform, work normal business hours and are subject to control. Effectively, these people perform employee like personal services and are not entitled to annual leave, long service leave and employee superannuation entitlements.

Potential Remedies

There are potential entitlements to annual and long service leave and employer superannuation contributionswhere you have been working as a contractor or sub contractor.

What action to take

Contact Unfair Work Australia and we will fight for your entitlements.

Termination of employment

Unfair dismissal claims

If you have had your employment terminated there is a possibility that there is an entitlement to lodge an unfair dismissal claim.

Contact Unfair Work Australia and we will fight for your rights.

Unfair Work Australia can fight for your rights in relation to unpaid or underpaid entitlements.

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