The former operators of Quest serviced apartments in South Perth have been fined almost $59,000 for a sham contracting arrangement designed to bypass industrial relations laws.

Quest South Perth Holdings Pty Ltd sacked two housekeepers and immediately re-hired them as purported independent contractors to perform the same duties in 2009. They also sacked a receptionist at Quest on Arlington but she was not re-hired. The Fair Work Ombudsman initiated legal action in 2011, alleging the arrangement…