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These provisions are consistent with the amendments made under the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006 (Cth) with the exception that this Bill removes express remedies of injunction and compensation. It is submitted that these provisions are consequently deficient in terms of remedies. Additionally, it is submitted that there needs to be provision for Fair Work Inspectors and appropriately authorized officials of organizations to have powers to investigate the genuineness of an independent contract for these sham contract provisions to be effective and enable FWA to test the relationship where it is, possibly incorrectly, labeled a contract for services. 

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The Fair Work Ombudsman has launched a prosecution against the operators of a NSW security company over their alleged involvement in underpaying 22 workers almost $75,000. Facing court is Damien Peter Love, the sole director of Drymist Holdings Pty Ltd, and his wife Tammy Leigh Love, a part-owner of the Wollongbar-based company. Drymist Holdings was placed into liquidation in August this year, which prevents the Fair Work Ombudsman from prosecuting the company. Fair work Australia is the national workplace relations tribunal that was established by the Rudd Government under the Fair Work Act 2009. It is an independent body with the power and authority to carry out a range of functions that include: 

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The Fair Work Ombudsman is the central point of contact for free advice and information on the Australian national workplace relations system. The Fair Work Ombudsman also investigates workplace complaints and enforces compliance with national workplace laws. The Federal Workplace Ombudsman has initiated legal action in the Federal Magistrates Court against Adrian Luik, of Arkana Road, the Gap. It alleges that Luik’s former company Alexander Rose – trading as Javelin Security Services – failed to properly pay one of its patrol officers employed between March and May, 2006. Workplace Ombudsman Executive Director Michael Campbell says Luik is named as the respondent because the company has since been wound up and deregistered. 

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Workplace sham contracting arrangements can present significant risks for employers who are seeking to avoid the employment related statutory obligations, such as superannuation, payroll tax, workers compensation, leave entitlements and withholding tax. However employers who intentionally disguise employees as individual contractors face serious financial penalties of up to $6,600 for individuals and $33,000 for corporations if convicted. Sham contracting occurs where an employer engages a worker under the same conditions as a normal employment relationship, but classifies the worker as an individual contractor. The arrangement may be as blatant as an employer dismissing its employees then re-engaging them once an ABN is provided. In more discreet cases, there may be difficulties in establishing whether a sham contracting arrangement exists. 

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Aus Guards gives you total control over your workers without the associated risks of employment and contracting! 

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