Sham contracting.
Sham contracting is commonplace in the adult entertainment industry. For example, it may be when you are expected to adhere to employee-based conditions (such as, certain roster, uniform or labour requirements) but without employee-based entitlements (such as, a base wage). Or perhaps you’re paying arbitrary “house fees” and/or subject to “fines”?
What is sham contracting?
Sham contracting is where a person working as an employee is told they are an independent contractor when they’re not. They will also be treated like an independent contractor in certain ways, for example, they may be required to have an ABN and submit invoices.
Sham contracting is illegal. It’s illegal to:
claim an employee is an independent contractor;
say something false to convince an employee to become an independent contractor;
dismiss or threaten to dismiss an employee if they don’t become an independent contractor;
dismiss an employee and hire them as an independent contractor to do the same work.
Sham contracting can be done intentionally or carelessly by an employer. These types of arrangements are sometime set up by employers who are seeking to avoid responsibility for paying legal entitlements to employees.
(source: Fair Work Ombudsman - Page reference No: 2799, 11 February 2021)
Why address the issue of sham contracting?
The purpose of addressing the issue of sham contracting is so that strippers:
Can make more informed decisions about their work practices,
Can access and exercise their professional rights and entitlements
Can choose whether they wish to be engaged as an employee or an independent contractor.
There is a myth that addressing the issue of sham contracting requires strippers to shift to an employee-based model. This is not the case. If you are subject to a sham contracting arrangement but you enjoy the freedom of stripping and being an independent contractor, then the good news is that you are likely entitled to either more freedom and choice or more compensation. Others may be less concerned by the requirements imposed on them but would like more financial security.
It is important to know your rights in order to make informed decisions about the terms of your professional engagement. Understanding what options are available to you allow you to operate safely and profitably in the industry.
When there is an existing contract and/or agreement or ‘mutual understanding in place.
You may be wondering how 'sham contracting’ applies in the instance that you have signed a contract or established a mutual understanding with your club or agency to forgo certain entitlements and/or commit to certain conditions, even as an independent contractor.
Chances are, if you have been asked to sign away your rights, this contract is not legally binding or enforceable. This is also why it is important to know what your rights actually are, and your club or agency is not always the best source of truth. Similarly, establishing a mutual agreement between parties does not prevent you from accessing and exercising your rights and entitlements, nor does it negate the legal responsibilities of your employer or hirer.
Sham contracts and “mutual agreements” are common in the adult entertainment/sex work industry, not just in Australia but globally. They are a generic tool used propagate industry narratives that exploit and marginalise workers, often reinforced by fear mongering and/or a “family” rhetoric.
P.S. “Fines” aren’t legitimate. If your pay/commission is being withheld or docked, see the links below or contact us.