Fair Work targets sham contracting in new financial year

The health industry and the private practice sector will not be a priority for the Fair Work Ombudsman this year. The Ombudsman has clearly stated its central focus in the 2021-22 financial year will be the high levels of non-compliance in the contract cleaning, fast food, hospitality and horticulture sectors. 

Whilst our membership may be breathing a sigh of relief, we encourage private practices to maintain a focus on compliance with the Fair Work Act 2009 and the Modern Awards. Employees and the Ombudsman can bring underpayment and Award-related claims against practice owners up to six years after any contravention of the Act.

Sham contracting is noticeable across many industries but relevant to private practice, as many medical practitioners are engaged under service agreements, rather than employment contracts. If these service agreements are drafted poorly, or do not reflect the actual agreement struck, this can give rise to risks that the relationship is one of employment. In this instance, the Ombudsman may investigate such arrangements and take legal action against practice owners for sham contracting. 

We encourage members and managers to contact us should you want any service agreements with your doctors reviewed. We will facilitate a health check of your service agreements. Secondly, to support our members and managers, we are happy to raise any Award-related queries with the Ombudsman anonymously on your behalf, which will provide you with reliable guidance on Award-related entitlements for your employees.

Please reach out to our Workplace Relations Team at workplacerelations@amaq.com.au or (07) 3872 2222 or, if you have any questions, queries or concerns about workplace laws; or need any advice, guidance and reassurance regarding Award compliance.