We all know that the black economy is alive and well, despite
the enforcement activities of the Australian Taxation Office and
the Fair Work Ombudsman (FWO). In the last couple of months,
I've seen arrangements which are not merely dodgy, but which
are unquestionably illegal:
- A bottle shop which pays staff in cash (at a good rate, but no
tax, no super), and a slab of beer instead of public holiday
penalty rates – really, where do you start?
- Two senior professionals employing a secretary for regular work
on condition that she sets herself up as a contractor – sham
contracting anyone?
However, these arrangements at least involve pay. Even worse are
arrangements for unpaid work. A common form of this is the
"trial period" or "work experience" or
"internship." The FWO and the law are quite clear about
this: work in the context of employment must be paid for. While a
transitory trial (such as a barista demonstrating coffee making
skills, or a candidate working a
