Latest News

Back to Latest News back

 

Fitness Australia to host webinar on ‘sham’ contracting

Fitness Australia to host webinar on ‘sham’ contracting
February 28, 2018

With a number of fitness facility operators uncertain over the complexities of Australia’s workplace relations environment, Fitness Australia is to stage an online webinar on ‘sham’ contracting.

Being held on the morning of Wednesday 7th March, the webinar, Contractor vs Employee: Learn about Sham Contracting and how to avoid it, is free to AusREPs and Fitness Australia business members.

Many fitness operators have long preferred engaging independent contractors over in-house employees but matters came to a head last year when leading 24/7 gym group Snap Fitness has claimed it was not responsible for the actions of one of its personal trainers in a negligence lawsuit.

In the wake of Snap Fitness’ liability dilemma, fitness franchise KX Pilates took the step of changing its arrangements with all of its trainers so they became PAYG employees and receive associated benefits.

At the time, KX Pilates founder and Chief Executive Aaron Smith advised “KX has done this to give back to, and benefit, our trainers.

“The fitness industry for years has accepted sham contracting as the norm.

“It's easier for trainers to be contractors as employers can fire them easily, don't have to worry about paying their payroll tax, and also get out of paying Work Cover and Private Indemnity Insurance.

“So basically, business owners are saving money whilst their trainers are being exploited.”

However, this move was criticised by contractor compliance and management company Certica.

In a Blog, Certica's Stephanie Lewis wrote "gyms have been switching to traditional employment relationships as a way of limiting ‘risks’ in their operations, which frankly, leaves us baffled."

Commenting on KX Pilates actions, Lewis added that their "transition is drastic and not feasible or warranted for other fitness clubs.

"What the company did seems like a knee jerk reaction that may not consider best practice, and it could actually have the negative effect of putting them in the jurisdiction of the FWO and other regulators."

In addition, in two relatively recent cases, the Federal Circuit Court imposed significant penalties on (non fitness industry) employers that were found to be in contravention of the ‘sham contracting’ provisions of the Fair Work Act 2009 (FWA) (misrepresenting an employee relationship as an independent contracting arrangement). Back pay was required to be made, and penalties were also imposed against directors of the employer companies.

A ‘sham’ contracting arrangement occurs when an employer deliberately masks an actual employment relationship as an independent contracting arrangement, when in reality the worker is an employee under workplace relations law and is therefore entitled to a range of entitlements as set out in the National Employment Standards (NES).

The Fitness Australia webinar, Contractor vs Employee: Learn about Sham Contracting and how to avoid it, is being led by HR Assured.

It will offer the opportunity for both businesses and individuals to get their head around the independent contractor vs employee distinction and what the risks are of getting it wrong.

It will focus on:

• Distinguishing between an independent contractor and an employee in the fitness industry.
• Rights and obligations in an employment relationship vs contractor arrangement.
• What is sham contracting?
• The risks of getting it wrong.
• Recent case studies

Fitness Australia webinars are designed to educate and provide the tools necessary to navigate through the complexities of Australia’s workplace relations environment in the fitness industry.

Click here for more information on the webinar.

Both Fitness Australia and the Australian Fitness Network have previously issued advisory notes on Sham Contracting.

Click here to view the Fitness Australia advisory note,

Click here to view the Australian Fitness Network advisory note.

18th January 2018 - FITNESS AUSTRALIA’S BILL MOORE FLAGS INDUSTRY CHALLENGES FOR 2018

17th January 2018 - FOCUS ON BUSINESS AT 2018 FILEX CONVENTION 

3rd January 2018 - FAIR WORK COMMISSION CONSIDERS FITNESS INDUSTRY AWARD PENALTY RATE RISES

27th September 2017 - FITNESS SHOW ANNOUNCES CONTENT INTEGRATION AGREEMENT WITH FILEX

28th August 2017 - FITNESS AUSTRALIA ACKNOWLEDGED AS TOP INDUSTRY ASSOCIATION FOR COMMUNICATIONS AND MARKETING

21st July 2017 - KX PILATES MAKES A STAND ON SHAM CONTRACTING

10th July 2017 - SNAP FITNESS CLAIM IT IS NOT RESPONSIBLE FOR PT’S ACTIONS IN NEGLIGENCE LAWSUIT 

5th June 2017 - FITNESS AUSTRALIA BRINGS INDUSTRY STAKEHOLDERS TOGETHER ON KEY ISSUES 

22nd September 2016 - SNAP FITNESS THREATENS LEGAL ACTION OVER REPORTING OF FUTSALROO SACKING 

15th April 2016 - MICHELLE BRIDGES SAYS UNQUALIFIED PERSONAL TRAINERS PUT LIVES AT RISK 

24th March 2016 - ACTIVITY ENTREPRENEURS SHARE THEIR BUSINESS SECRETS 

25th March 2014 - FITNESS AUSTRALIA RELEASES NATIONAL MEMBERSHIP CONTRACT TEMPLATE, APPOINTS NEW BOARD MEMBER 

11th November 2011 - PLUMMER WARNS OF THE DANGERS OF LOW-COST FITNESS MEMBERSHIPS


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

ICP

ICP is an Australian-based company focused on indoor climbing. ICP will manage your project from initial design to completion and beyond, whether you're building an international-level climbing…

read more

Attractions / Fitness / Recreation

 
 

Enta Australasia

As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd.  Click here to view the VIVATICKET Pty Ltd listing.  19th July 2018 - ENTA…

read more

Technology / Ticketing / Venues

 
 

MYRTHA POOLS

Founded in 1961, Myrtha Pools® quickly became Italy’s première swimming pool company, and has since grown into one of the world's leading swimming pool construction…

read more

Aquatics / Design / Play / Waterparks / Wellness

 
 

Fun Wheels Pty Ltd

Fun Wheels Pty Ltd are the premium dealer in Australasia for the Dutch company BERG’s commercial and domestic products. Our flagship product is their revolutionary pedal go-kart – the…

read more

Attractions / Tourism / Venues

 
 

Humanforce

Humanforce is a global provider of workforce management solutions for companies who need flexibility to manage complex workforces. Companies use Humanforce to manage everything from time and…

read more

Hospitality / Retail / Technology / Venues

 
 

The Jump Pad

The Jump Pad is a safe, flat inflatable made in a variety of sizes which can be used indoor or outdoor. From 3mx3m up to a whopping 9mx21m. Markets include Indoor and outdoor playgrounds, schools,…

read more

Attractions / Entertainment / Play

 
 

BH Fitness

BH Fitness, part of the long-standing and iconic bike manufacturer BH Group, is a global leader in fitness equipment for both Commercial and Home markets. The company, with the headquarters based in…

read more

Fitness / Recreation / Sport / Technology / Wellness

 
 

XBODY Australia Pty Ltd

PROVEN BUSINESS CONCEPTS WITH XBODY XBody’s goal is to see you and your EMS business succeed. That is why we don’t just sell equipment, we provide know-how, expert knowledge,…

read more

Fitness / Technology / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business