Sham Contracting

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.

Employment Law Changes

Employment Law is currently undergoing change.  The latest changes to the Employment Relations Act 2000 focus on establishing minimum employment standards and increasing sanctions.

Employees should be aware of key changes to Paid Parental Leave, the minimum wage, reporting and time recording and the removal of “zero hour” contracts. So, if you are employed and do not have an employment contract, or you think your employer has not updated your employment contract we can help negotiate this process.