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Sham Contracting and the hidden traps RECs could land into

The ATO indicates that "sham contracting" is an issue for industries with small businesses inherently a part of that industry.

Electrical contracting businesses are susceptible, with industry stats showing that 50% of the electrical contracting industry are one-person businesses with 97.8% being businesses with staff of less than 15. So an industry predominantly made of small businesses.

The ATO link is at

electricianXchange in conjunction with EmploySure is hosting a webinar on various topics which will be critical for this industry. The link to register for this webinar is at

Discussion will cover:

  1. Given high number of single person businesses; getting someone on the job is so critical that due process goes out through the door e.g. well documented & thought out legal contracts
  2. Low net margins inherent within this industry resulting in cutting corners i.e. sham contracting arrangements, use of labour hire companies to abdicate responsibility of HSEQ and how this can come back to bite at the worst time possible.
  3. New legal developments & impacts on businesses not understood (Victorian labour licencing legislation, licence checking of A-Grades for unsupervised electrical work, continuing professional education coming in for A-Grades becoming mandatory)
  4. Use of company property for employers & staff (cars, tools, electronic devices)
  5. Driving vans and company policies necessary in relation to that
  6. Bullying & harassment policies (or the lack of them & the traps this can lead to)
  7. Employment laws (EBA vs non-EBA minimum awards, travel time needing to be paid as part of electrical awards, accounting for sick leave, annual leave, long service leave, termination grounds & dismissal policies, termination and restraints being effective, over payment / under payment issues

This is a free webinar and will be really useful.

Link to register is at

You can ask any question you have and any one coming to that webinar will be offered a free consult with experts able to help.

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