Sham contracting

Background

In late 2016 an AU$85m class action was filed against a large marketing group for sham contracting. This occurs where an individual described as an independent contractor actually holds a relationship of employment. It can be used to avoid paying minimum rates and/or other employee benefits.

Harbour’s funding

Harbour provided the funds necessary to progress the class action such that the claimants could participate in the action at no upfront cost. If the class action fails, specialist insurance purchased by Harbour will cover the defendant’s adverse costs with none owing from the claimants.

Outcome

The case is ongoing.