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Generally: If you work for a labour hire company that pays you directly, then you cannot work under an ABN as you are an employee. If you have no independence in how you go about your work, you are an employee. Most casual labourers are employees.

Sham contracting is an attempt by an employer to misrepresent or disguise an employment relationship as an independent contracting arrangement. Employers may do this to avoid having to give an employee their proper work entitlements, such as minimum rates of pay and leave entitlements.

A sham contracting arrangement is when an employer attempts to disguise an employment relationship as a contractor relationship. They may do this to avoid certain taxes and their responsibility for employee entitlements like: minimum wages. superannuation. leave.

As a contractor, if you do not have an ABN before doing work, your hirer may legally withhold the top rate of tax, plus the Medicare levy, from your payment. Labour hire workers aren't entitled to an ABN, so you need to check if you're entitled before applying.

To avoid sham contracting, ensure you undertake a due diligence process. Confirm that both you and your prospective workers understand the nature of their work status and draft your contracts to reflect this.

An agreement written into the contract allows either party to terminate the contract after giving written notice. For example, your contract may state you may terminate your employment contract by giving your employer two weeks' notice, allowing them ample time to find someone to replace you.

An employee usually works as the employer directs them. A contractor runs their own business and provides a service, usually works the hours required to do a task, and has a high level of control over the way they work.

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Riverside California Self-Employed Tennis Professional Services Contract

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How do I work under an ABN?

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