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It's vital for employers to undertake a "holistic and careful assessment" of their independent contractors' arrangements, ahead of the imminent changes to sham contracting claims, a lawyer says.

As part of the Closing Loopholes laws set to take effect next week, independent contractors will have a "lower threshold" for challenging their arrangements, Kingston Reid partner Christa Lenard tells an HR Daily Premium webcast.

Rather than defending claims by proving they didn't act recklessly when making representations about a contracting arrangement, the onus will be on employers to prove they believed such arrangements were "reasonable", she says...