Sham contracting guidance note available online

Fair Work Building & Construction (FWBC) has released a guidance note for industry on sham contracting. The guidance note gives the building and construction industry information about how FWBC interprets the laws it enforces.

Independent research conducted in 2012 found that as many as 13% of contractors in the industry could be on sham contracts.

Guidance Note 7 describes FWBC’s sham contracting policy and delivers on two further recommendations arising out of the 2011 Sham Contracting Inquiry:

• Recommendation 5 - develop a sham contracting guidance note.
• Recommendation 7 - develop an independent contractor information statement.

“We also received feedback from industry stakeholders including the MBA, CFMEU, AiG and HIA in relation to Guidance Note 7,” said FWBC Chief Executive Leigh Johns.

“The suggestions made by industry stakeholders have led to a guidance note and information statement better targeted at those in the industry. FWBC is committed to this process of co-design with industry.”

Guidance Note 7 broadly describes how FWBC investigates alleged contraventions of sham contracting provisions (sections 357-359) of the Fair Work Act 2009 and the enforcement options available. This guidance note also contains an information statement that FWBC recommends principals in the building and construction industry provide to all new contractors prior to their engagement.

FWBC guidance notes are available on the FWBC website.