Australian Building and Construction Commissioner v Inner Strength Steel Fixing Pty Ltd & Anor
Court file number: WAD306/2011
Applicant: Australian Building and Construction Commissioner
Respondent(s): Inner Strength Steel Fixing Pty Ltd, Vishuddha Shane Sacha
Date filed: 21 July 2011
Alleged breach: Sham contracting
- On 17 May 2012, the Federal Court of Australia imposed a penalty of $6,750 on Mr Vishuddha Shane Sacha, and a further $41,250 on Inner Strength Steel Fixing.
- Australian Building & Construction Commissioner v Inner Strength Steel Fixing Pty Ltd  FCA 499
Diploma Construction (WA) Pty Ltd was the head contractor responsible for the construction of a commercial building complex at 36 Adelaide Terrace in Perth, Western Australia.
Diploma engaged Inner Strength Steel Fixing Pty Ltd (Inner Strength), to perform building works at the site. Mr Sacha was the sole director employed by Inner Strength and was responsible for recruitment and management of workers.
In June 2006 Inner Strength employed a steel fixer under a contact of employment.
In June 2008 Mr Sacha told the employee that he would no longer be employed as an employee, but would be engaged by Inner Strength under a contract for services as an independent contractor.
From that time the employee was required to render invoices for payment and Inner Strength did not pay the employee’s employment entitlements.
In June 2009 Inner Strength engaged another employee under a contract for service, where he would perform work for Inner Strength as an independent contractor. The employee submitted invoices for payment and Inner Strength did not pay the employee’s employment entitlements.
Between early 2010 and July 2010 Inner Strength hired another three steel workers under contracts for service as independent contractors.
Notwithstanding the representations made by Inner Strength and Mr Sacha, all of the above employees, as a matter of fact and law, were employed under a contract of employment.
The ABCC alleges that Inner Strength and Mr Sacha engaged in sham contracting by misrepresenting employment arrangements as independent contracting arrangements.