News Headlines
Insulators targeted by FWO20-Apr-2010
For established companies in the insulation industry, some of the challenges resulting from the gove..
Security firms audited20-Apr-2010
The Fair Work Ombudsman recently completed its first audit of Security firms across Australia. It fo..
Security Company – don't engage sham contractors!
The Business
Our Client is a security business providing static and patrolling guards to monitor premises on a 24/7 basis.
The business has a transient workforce with high turnover and the industry is highly competitive.
In this particular case the Client had tried to address its challenging workforce needs by engaging its workforce as ABN contractors.
The Challenge
The workforce model that the Client had used was unsustainable as it was likely to be deemed as sham contracting if ever challenged. Resulting in their workforce being deemed to be employee’s rather than contractors which would then lead to the back payment of all “employee” entitlements as well as sizeable fines for the illegal practice of sham contracting.
The Contracting Solution
The Client chose to use Contracting Solutions system because it is recognized as being bone fide independent contracting. The same workforce flexibility objectives were reached whilst being fully compliant with all legislative requirements.
Key Learning
Use Contracting Solutions system to meet you workforce flexibility needs whilst being fully compliant with all legislative requirements and avoid involvement in the very risky practice of sham contracting.
Applicability to other Industries
Cleaning
Hospitality
Building Trades
Any industry where sham contracting is used
