Sham Contracting Self-Test — Am I an Employee?
Engaged with an ABN but suspect you're actually an employee? Run the 12-factor test based on Personnel Contracting [2022] HCA + 2024 Closing Loopholes. Get a scored verdict + recoverable entitlements.
Last verified: 23 July 2026SHAM CONTRACTING SELF-TEST
Engaged with an ABN but you suspect you're really an employee? Run the 12-factor totality-of-relationship test. Based on the post- Personnel Contracting [2022] HCA framework + 2024 Closing Loopholes definitions. Sham contracting penalties from 1 July 2026: up to A$21,840 per contravention for individuals, A$109,200 for small-business companies, A$546,000 for companies with fewer than 15 employees, and A$546,000 for larger companies.
Tick every factor that applies to your situation
Borderline — fact-specific
50% employee indicators
Your situation has indicators on both sides. The test under CFMMEU v Personnel Contracting [2022] HCA 1 looks at the TOTALITY of the relationship including the contract terms. A borderline case requires legal advice — the outcome depends on facts that aren't fully captured by a 12-question quiz. Get a 30-minute employment-lawyer consultation (A$200-A$400) before deciding to act.
If you suspect sham contracting
- Document the relationship: invoices, work patterns, communications, who provides what equipment.
- Lodge an unpaid super enquiry with the ATO (separate process from FWO).
- Lodge a Fair Work Ombudsman online tip-off (anonymous option). FWO has substantial sham-contracting enforcement priority.
- For large amounts or complex matters: get an employment lawyer involved.
- Use Contractor or Employee Check for the more detailed test.
FairWork Mate AI
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Send your details to Liquid Employment Lawyers
Liquid Employment Lawyers is a paid legal service and our referral partner, not free Fair Work advice. Tell them what has happened and a member of their team will call you back. For free general guidance, use our tools or call the Fair Work Ombudsman on 13 13 94.
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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.
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