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Employees Or Contractors? Beware Sham Practices

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Running Time: 8:10

Date: 01/06/2012

Employees or contractors? Be clear about how you're hiring - getting it wrong can be costly.

With sham contracting - treating employees as if they were independent contractors in order to save money - under the Fair Work microscope, it's important to understand the distinctions between the two, and how to stay on the right side of the law. Kathryn Dent, a specialist workplace lawyer with People+Culture Strategies, says such things as tax payments, leave arrangements, superannuation, workers' compensation and the ability to delegate will all form part of the employment relationship, which courts will use to determine cases. Careful documentation put in place before the relationship starts will help to show intent, but it must also be carried through in practice.


Topics: Human Resources, Management

Kathryn Dent, People+Culture Strategies