Sham contracting is when your employer classifies you as an “independent contractor” instead of an “employee”.
They do this to avoid paying you your correct minimum hourly rate, overtime and penalties, and your entitlements such as annual leave, sick leave and superannuation.
Sham contracting arrangements are illegal.
An employer cannot sack you as an “employee” and then re-hire you as an “independent contractor”.
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LAST UPDATED: April 2022