Claims of Sham Contracts

Wednesday 23 March 2011 @ 10.26 p.m. | Corporate & Regulatory

The Construction Forestry Mining and Energy Union (CFMEU) says the Federal Government needs to crackdown on what it claims is sham contracting on Commonwealth projects.

It comes as three federal regulators are also investigating the extent of sham contracts across several industries.

Some employers are using false contracts to avoid paying worker entitlements and tax.

Master Builders Australia says the report is a shameful attack on sub-contractors.

CFMEU says there needs to be proper checking by the Government authorities including the Australian Taxation Office that minimum standards are being met. There also needs to be a process where the Government's code and implementation guidelines are properly enforced.

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