ARTICLE · 19 JUNE 2017

Sham contracting: Contractor vs. employee

Watkins Tapsell

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Some claims made in the class action relate to individuals classified as independent contractors, rather than employees.

AustraliaEmployment and HR

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"Sham Contracting" has raised its ugly head once again. Charity recruitment agency, Appco Group, is having the light shone on its employment practices with proceedings being commenced against them in the Federal Court in what's tipped to be one of the largest class actions of its type in Australia.

The claims made against Appco Group relate to individuals being classified as "independent contractors" rather than employees, along with allegations of gross underpayments and inappropriate workplace rituals.

Part of the issue is unravelling the complicated structure of management and labour hire companies in place between Appco Group and the individuals. No determination has been made by the Court at this stage.

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