Sham contracting: become an independent contractor, or you’re fired!

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From Lexology — Interesting report of legislation in Australia to protect workers — “Robko Construction Pty Ltd (Robko) wrote to one of its employees stating it was happy with her work, and wanted her to continue working, but it did not have enough work for her to continue as a full-time employee. Robko provided the employee with an independent contractor agreement and told her it was “an ABN or nothing”. When the employee declined to sign the agreement, Robko terminated her employment.

Proceedings were instituted against Robko, under the sham contracting provisions of the FW Act.  These provisions render it unlawful to:

dismiss or threaten to dismiss an employee in order to engage the individual as an independent contractor to perform the same, or substantially the same, work; and

make a statement, known to be false, to persuade or influence an employee to enter into a contract for services to perform the same, or substantially the same, work as an independent contractor…”

Read the full story at Sham contracting: become an independent contractor, or you’re fired!

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