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ABCC targets Queensland building sites in sham contracting crack-down


QLD , Statement 

Release date: 25 August 2011 

The ABCC will scrutinise the employment records of a number of Brisbane building sites in coming months as part of a series of targeted audits into the problem of sham contracting and incorrect payment of employee entitlements.

The audits will initially focus on subcontractors engaged on projects funded by the Queensland Government that were affected by work stoppages in late May 2011.

“We run these audits to give industry participants advice about sham contracting and help them ensure sure their employment arrangements are lawful,” Deputy ABC Commissioner (Field Operations) Michael Campbell said.

“It also gives us the opportunity to assist employers to understand their obligations when it comes to payment of employee wages and other entitlements like overtime, industry allowances and special rates.”

“In cases where records are not up to scratch, or there is evidence suggesting sham contracting, we may consider launching a wider investigation.”

A sham arrangement occurs where the parties to an employment relationship intentionally misrepresent or disguise a contract of employment as a subcontracting relationship.

Mr Campbell said the ABCC can help building and construction industry participants to understand their obligations and rectify inadvertent ambiguities associated with employment contracts.

The ABCC currently has three proceedings before the court and 50 investigations nationally relating to allegations of sham contracting.

The ABCC promotes fair and productive building and construction work and provides impartial regulation and advice to all in the building and construction industry. 

Building and construction industry participants that require information about their workplace rights and responsibilities can contact the ABCC on 1800 003 338 or see www.abcc.gov.au.

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