Fair Work Nsw Sham Contracting

As a copy editor, it is crucial to be aware of the latest news and developments in various industries, including employment law. One of the current topics that have been making headlines in Australia is the Fair Work NSW Sham Contracting Laws.

What is Sham Contracting?

Sham contracting refers to when an employer attempts to disguise an employment relationship as an independent contracting arrangement. It involves a situation where the employer and the employee agree that the employee is an independent contractor, despite the fact that they are entitled to employment rights and protections.

The Fair Work NSW Sham Contracting Laws

In New South Wales, the Fair Work Act 2009 (Cth) and the Independent Contractors Act 2006 (NSW) contain provisions that prevent sham contracting. The Fair Work Ombudsman (FWO) has been actively enforcing these laws to ensure that employees receive the rights and entitlements they are entitled to under the law.

Penalties for Sham Contracting

According to the FWO, penalties for sham contracting include hefty fines of up to $63,000 per breach for corporations and $12,600 for individuals. In addition to fines, employers may also be required to pay back-wages and other entitlements that employees missed out on during their time as a sham contractor.

Why is Sham Contracting a Problem?

Sham contracting not only denies employees the rights and entitlements they are entitled to as employees, but it can also lead to exploitation, underpayment, and loss of job security. Furthermore, it creates an unfair advantage for employers who avoid paying employee entitlements such as superannuation, sick leave, and workers` compensation.

The Impact of COVID-19 on Sham Contracting

The COVID-19 pandemic has highlighted the issue of sham contracting, as it has exposed the vulnerability of many workers who were classified as independent contractors but were, in fact, employees. The pandemic has also led to the increase of temporary and casual employment, leading to a rise in the use of labour hire and agency workers.


As a copy editor, being familiar with the latest developments in employment law, such as the Fair Work NSW Sham Contracting Laws, is essential. While the laws in place aim to protect employees, it is also important for employers to understand their obligations and ensure that their employment arrangements are in compliance with the law. The FWO is actively enforcing these laws, and non-compliance can lead to significant penalties and damage to an employer`s reputation.