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Catching the Phoenix

6 June 2010


It's pleasing when we receive complaints from people who have been 'screwed over' when they tell us that, eventually, action seems to be occurring. In April this year we reported on complaints from unrelated people about companies conducting 'phoenix' and sham contract operations in the tourism and construction industries in Queensland and northern NSW.

We've received information from one of the complainants that the ATO and the Fair Work Ombudsman are carrying out some strong follow-up investigations.

The complainants have expressed their frustration to us that the wheels of government move very slowly. We agree. But what we do say to anyone looking to complain is that you need to be patient and persistent. Document the facts as best and as clearly as you can. This makes the job for the government department much easier. Also, don't give up. If you have a genuine complaint, the government department has to allocate considerable people resources to the investigation. Several times we have seen complainants give up and withdraw their complaint. This is hugely frustrating for dedicated public servants who are trying to do a good job.

We've obtained copies of the contracts in use and are having a look at these at the moment from a 'fair contracts' perspective.

Fair Contracts

Here's another one. A work-from-home independent contractor has contacted us about working for a 'psychic' on-line service. The service is using a contract downloaded from an American website. We're having a look at this one as well.