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Sham contracting case studies

How do I know if an independent contractor arrangement is genuine?

Telling the difference between an independent contractor and an employee is not always a straightforward process.

Some employers misrepresent or disguise employment relationships as independent contracting arrangements to avoid paying legal minimum rates of pay, tax and entitlements, such as annual leave and sick leave. Arrangements such as these are not genuine and may be regarded as sham contracting.

It is important that you know whether you are an independent contractor or an employee so you can be sure that you are receiving the correct entitlements.

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Page last updated: 28 July 2011