Genuine contract or sham contract?

Sham contracting is an attempt to disguise an employment relationship as an independent contracting relationship.

Employers may do this to avoid having to give an employee their proper entitlements, such as minimum rates of pay and leave entitlements. 

Investigation of complaints

The Fair Work Ombudsman (FWO) has powers to investigate sham contract complaints.

The Australian Building and Construction Commissioner (ABCC) has similar powers for matters in the building industry 

The FWO and ABCC cannot investigate complaints from independent contractors relating to a breach of their contract, for example, if they haven't been paid in accordance with the terms of the contract.

If you're a contractor in this position, you may be able to take court action and should seek legal advice.

Need more information or advice? Contact the Independent Contractors Hotline on 1300 667 850.