Shine Lawyers in Australia has launched a class action against a company involved in the National Broadband Network. This has the potential to involve up to 4,000 employees and is claiming $400 million in unpaid wages.

Shine claim that the employer used sham contractor agreements.

In New Zealand the ERA has been critical of sham contracting arrangements. They have blankly said that “simply put if employment is disguised as contracting, it’s sham contracting and the Labour Inspectorate will take enforcement action and seek penalties” .

In a recent case a Taxi driver was awarded $100,000 in missed wages.

The purpose of this decision was to “send a strong message that employers need to be very clear about the difference between contractors and employees – you can’t remove minimum employment standards if, in essence, you’re treating staff in any way as employees”.

If you are involved in a contractor arrangement that does not feel right please get in contact.