Sham Contracting: A Costly Mistake for Small Business

Sham Contracting: A Costly Mistake for Small Business

A recent article by the team at South Geldard Lawyers highlights an issue that can catch out even well-meaning employers: sham contracting.

In their blog post, South Geldard explain that sham contracting occurs when a worker is engaged as an independent contractor but is, in reality, functioning as an employee. Whether intentional or not, the penalties can be significant.

Key reminders for small business owners:

  • It is unlawful to misrepresent an employment relationship as contracting
  • Labels in a contract are not enough, the true working relationship matters
  • Control, hours, tools, and payment structure all play a role
  • Breaches can lead to serious financial penalties

For businesses across Rockhampton, Yeppoon and the wider region, this is a timely reminder to review contractor arrangements and ensure they are compliant.

To find out more, read the full article from South Geldard Lawyers.

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