Stop Sham Contracting in Construction

Sham contracting is an illegal, but widespread, practice in the ACT building and construction industry.

It occurs when an organisation signs up workers as independent contractors (also known as ABN* workers) instead of hiring them properly as employees.

Organisations use sham contracting so they can avoid giving a worker their working rights and entitlements. Workers on sham contracts miss out on rights and entitlements such as:

• sick leave, holiday leave and long service leave
• overtime and public holiday rates
• protection against unfair dismissal
• redundancy payouts
• superannuation payments (paid by your employer at 9% of your salary)
• extra payroll tax
• workers' compensation insurance
• minimum award wages and conditions

Go to the ACT’s dedicated Slam the Sham website for more information about your rights and dealing with Sham Contracting.

For action being taken by the CFMEU Nationally including news, flyers in many languages and the Race to the Bottom Report (2011) go to: National Campaign against Sham Contracting