What is Sham Contracting?
When a company says that the people that work for them are independent contractors, but the company actually treats them like employees, it is called “sham contracting” in the Fair Work Act 2009 (Cth), and is illegal.
If Credico asked you to sign an Independent Contractor Agreement (ICA), that doesn’t mean that you really were an independent contractor. You may have been an employee if one or more of the following applied to you:
- Credico controlled your work life, including providing you with very specific directions about when and how to do your work
- you had set or standard work hours
- once you signed up, you expected that this was your ongoing “job” and there were discussions about your “career progression”
- you did not own any part of the Credico business and did not bear financial risk
- you were provided with the tools or materials required to undertake your assigned tasks
As an employee you are entitled to certain benefits that independent contractors are not, including:
- a minimum wage of $18.82 per hour, not including leave loading, entitlements and overtime
- have income tax paid directly to the Australian Taxation Office (ATO) on your behalf
- being paid wages or a salary regularly
- sick leave and personal leave
- annual leave or casual leave loading
- compulsory employer contributions to your superannuation
- other entitlements like travel allowance, meal allowance, living away from home allowance, uniform allowance, etc.
If you worked for Credico and didn’t receive these minimum entitlements, you may have been a victim of sham contracting and are entitled to the recovery of those entitlements.
To register your claim against Credico click here.