Real Estate Association of NSW
Sham Contracting

The question as to whether a person is a contractor or employee is something that all parties should be very wary about. Just because a person provides an ABN number and supplies a Tax Invoice does not automatically make that person a contractor.

Employers have been prosecuted for employing persons under such arrangements when it is clear that the person is an employee and not a contractor. We suggest that parties seek comprehensive advice from a specialist workplace relations lawyer regarding such matters, and not just rely on an accountant or suburban solicitor’s view.

Although there are many circumstances where it is lawful for a business to engage an independent contractor, the law is there to protect employees from being treated as an independent contractor when they should in fact be regarded as an employee.

The Federal regulator (the Fair Work Ombudsman) has published information regarding contractors vs. employee and sham contracting - please visit:

   Fair Work Ombudsman - Sham Contracting

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