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ARTICLE · 20 DECEMBER 2015

High Court finalises position on sham contracting in triangular contracting arrangement

Cooper Grace Ward
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This is a warning to employers attempting to disguise employment relationships under triangular contracting arrangements.

AustraliaEmployment and HR
Belinda Winter
Belinda Winter
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The High Court has determined that the sham contracting provisions in the Fair Work Act protect employees engaged by third party contractors and performing services to their former employer. The decision serves as a warning to employers attempting to disguise employment relationships as independent contractor arrangements under triangular contracting arrangements.

The facts

In the recent decision of Fair Work Ombudsman v Quest South Perth Holdings Pty Ltd & Ors [2015] HCA 45, the Fair Work Ombudsman (FWO) commenced proceedings alleging that Quest South Perth Holdings Pty Ltd (Quest) had misrepresented to two employees that they performed services as independent contractors under an engagement through a third party cleaning contractor.

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