The Fair Work Ombudsman is prosecuting two national companies for alleged sham contracting.
The ombudsman is accusing the companies of incorrectly employing 10,000 call centre workers and door-to-door sales people as contractors.
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Telco Services Australia, which provides direct marketing and sales services to Telstra, and Trimatic Contracts Services, allegedly incorrectly classified the workers as independent contractors when they should have been categorised as employees.
Documents lodged by the ombudsman in the Federal Court in Melbourne allege the two companies contravened sham contracting laws in all states and territories between 2006 and 2009.
The prosecution comes after the ombudsman launched unannounced inspections of call centres in Perth, Melbourne, Brisbane, Sydney and Adelaide.
"We are alleging the workers followed managers' directions and had little or no freedom over fundamental matters such as their work hours and how they performed their duties," Fair Work
Ombudsman executive director Michael Campbell said.
"It is our position that these workers were clearly employees, not independent contractors."
He said sham contracting occurs when an employer disguises or misrepresents an employment relationship as an independent contracting arrangement.
Independent contractors who should be classed as employees miss leave entitlements and minimum pay rates, Mr Campbell said.
The case is listed for a directions hearing on June 24.
