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ATO and Fair Work audit on contracting arrangements
Independent contracting is the primary workforce model of our sector. Approximately 80 per cent of residential building work is performed by independent contractors. They are a fundamental and legitimate part of our industry’s structure and have been for many decades.
When an employer misrepresents an employment relationship as an independent contracting arrangement, this is called “sham contracting.” Employers may do this to avoid obligations like paying superannuation, leave entitlements or workers’ compensation.
Despite valid claims that sham contracting is allegedly on the rise and the bureaucratic resources used to police the issue could be diverted elsewhere, it is important you review your contracting arrangements.
HIA has detailed guides and information to assist you in meeting your obligations when engaging independent contractors vs employees.
Find the latest expert advice, guides and much more!
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