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News headings from LabourStart


Top Marks to Sadliers for Sham-Contracting Crackdown

« Back to News Articles Top Marks to Sadliers for Sham-Contracting Crackdown

The TWU applauds Sadliers Transport for taking a tough stance against sham contracting by kicking an offending contractor out of its premises.

The TWU believes the use of ABN number by fleet-owners to disguise normal employment relationships to avoid paying workers entitlements is a big boil on the arse of the transport industry that needs to be lanced.

To their great credit, Sadliers senior management sent the following hard hitting email to all staff.

Recently we became aware of a company where Sham contracting arrangements were in place for people working in our business.

The result of this discovery has led to this contractor no longer being a partner to our business which unfortunately leaves three of his trucks and operators unable to work within our system.

This type of arrangement is illegal and has no place in this business.

If you are found to be operating under this arrangement there will not be any discussions around fixing the issue, you will simply be replaced by businesses that work within the guidelines of the law.”

A sham contracting arrangement occurs where an employer attempts to disguise an employment relationship as an independent contracting arrangement. This is usually done for the purposes of avoiding responsibility for employee entitlements.

Under the sham contracting provisions of the Fair Work Act 2009, an employer cannot:

  • Misrepresent an employment relationship or a proposed employment arrangement as an independent contracting arrangement
  • Dismiss or threaten to dismiss an employee for the purpose of engaging them as an independent contractor
  • Make a knowingly false statement to persuade or influence an employee to become an independent contractor.

The Fair Work Act 2009 provides serious penalties for contraventions of these provisions. Employees and independent contractors can request assistance from the Fair Work Ombudsman if they feel their rights have been contravened.