The Australian Building Construction Commisison has released its long awaited report into sham contracting.

The lengthy report makes it clear that businesses that engage sub-contractors are going to face increasing scrutiny in the immediate future.  The crackdown on contracting arrangements is part of a wider set of actions including extra attention from the Fair Work Ombudsman and the Australian Taxation Office.

Businesses need to understand that there is significant risk to them if they incorrectly classify workers as contractors when they are actually employees.  Incorrect classification can result in claims for underpayment of wages and overtime, allowance, leave entitlements, unfair dismissal and statutory offences for engaging in sham contracting

ESSA can assist employers in understanding their obligations in this complicated area.