Sham contracting can be a means by which businesses attempt to avoid employment laws and/or payroll tax by engaging services through contractor arrangements rather than employment arrangements.
Sham contracting laws were introduced to help protect contractors who really should be employees. Large penalties can apply.
Businesses may have alternatives available through franchising.
Businesses may be able to grant franchises and thus expand their business and their service reach without increasing their employee numbers.
In this scenario franchisees would obtain their own business and operate pursuant to a franchise agreement.
Food for thought.
Disclaimer: This blog is for information purposes only. You should not rely upon this information. You should seek legal advice for your specific circumstances.
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