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Acting Chief Justice Jeffrey Spender has highlighted the sham contractor arrangements being used by Construction company Underground in a recent judgement of the Federal Court. Justice Spender stated that the purported independent contractor set-up was a sham, bogus arrangement put in place by Underground to avoid their obligations as employers including payment of workers’ superannuation and income tax.
Justice Spender described the sham arrangements as "a species of a black economy" that needed to be thoroughly investigated and stamped-out. "It is not to be ignored or a blind eye cast when it is engaged in by employers", he said.
Transcript of hearing before Justice Geoffrey Spender (8 October 2008) 
(45KB)
Source: Workplace Express