Image Image Image Image Image
Scroll to Top

To Top

12

Apr
2021

In Uncategorized

By Bill

Sham Agreements

On 12, Apr 2021 | In Uncategorized | By Bill

The risks associated with the application of fictitious employment contracts have been reduced by a new approach to the law, influenced by research by Alan Bogg, Professor of Labour Law at the University of Oxford, and Anne Davies, Professor of Law and Public Policy at Oxford University. Given the cooperation between the FWO and the ATO, which deal with fictitious contracts, employers and employees who commit must carefully respect the relationships with the individuals concerned. Thus, it can be said briefly that the burden of proof rests with the party who characterizes the contract as false pretence. To form a fictitious contract, there must be a valid intent. As by Justice Diplock in Yorkshire Railway Wagon Co v. Maclure and Stoneleigh Finance Ltd. /Phillips[3] that for acts or documents to be a “sham,” the legal consequences that flow from them, all parties must have the common intention that the acts or documents do not create the legal rights and obligations they appear to create. No tacit intent of a “hammer” affects the right of a party he has deceived. Part of the review is to note that Fair Work Australia has increased powers to award contracts for which fictitious contracts have been entered into, including the awarding of orders. It will be interesting to see how this legal area evolves over the next twelve months. Already in 2017, the London Borough of Islington has secured an effective lawsuit against the local owners, Green Live Estates, for having entered into only two fictitious licensing agreements that should have been leases which, according to the Consumer Protection from Unfair Trading Regulations 2008[3], were fined $11,000 for deceptive business practices.

If all the local authorities were to take over Islington in fictitious agreements, a terrible amount of agents would make a lot of money. The law prohibits fictitious contracts and provides for heavy penalties for employers who break the law. For each organization, this could include a fine of up to $51,000. The Indian Contract Act 1872 contains different types of contracts such as compensation, lease and deposit. It also deals with representative contracts such as agency and partnership. But even if it is so exhaustive, there are some barricades to a treaty. These are not fictitious contracts and zero-hours contracts.