Can you tell the difference between an employee and a contractor?
Getting it wrong has become more expensive! Closing the loopholes changes to the Fair Work Act have increased penalties from 27th February 2024.
business dot gov dot au says:
A sham contracting arrangement is when an employer attempts to disguise an employment relationship as a contractor relationship. They may do this to avoid certain taxes and their responsibility for employee entitlements like:
– minimum wages
– super
– leave
It’s illegal for an employer to:
– misrepresent an employment relationship as an independent contracting arrangement
– dismiss or threaten to dismiss an employee for the purpose of engaging them as a contractor
– say something false to persuade an employee to become a contractor.
Review your workers to make sure you’ve classified them correctly!
Closing the loopholes info: https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/additional-fair-work-act-changes#shame-contracting
