Employer Tries to Avoid Paid Entitlements

A large fine, $313,500 has just been handed down by the Federal Circuit Court against an employer who engaged staff as independent contractors rather than employees in order to avoid making payments to them that they would have been entitled to as employees such as various allowances, leave and superannuation. The court was highly critical of the company and its “sham contracting” arrangements – a warning note for all employers to ensure any arms length contracting arrangements are not employment contracts by another name.