The contract term is an Australian Standards generic services contract term. (I've abbreviated it above). The contract is not a sham contract. It would've been great if Australian Standards had thought it wise to write a clause that stated "the parties to this contract will abide by WH&S legislation" but they didn't.
The claim can't go directly through WH&S law because the time limit has passed. I'm not writing the adverse action in this forum, but to emphasise the point of my post, the adverse action would definitely be adverse action for a prescribed reason under the employee/employer section of 342, and probably adverse action under altering the position of the independent contractor to their prejudice, but I think "injuring" is safer in court, and injuring has to be in relation to the terms and conditions of the contract because that's what parliament decided in their wisdom.
It maybe that upholding the term of the contract ("employee of independent contractor must follow WH&S procedures") is enough to construct a compensable adverse action claim, but it places no express contractual onus on the principal to follow WH&S legislation. Theoretically, the case can fail through no jurisdiction under section 342. To avoid that, the Judge must feel confident in stating "it's an implied term of this contract that the principal had to abide by WH&S legislation". Not only is it implied by the specific term, but it may be implied also because the 2006 Independent Contractors Act makes it clear that WH&S laws always apply, but an express contract clause it is not.
If a poster wants to state here that "altering the position..." is just as good a claim for damages as "injuring.....", great, please feel free to offer that opinion, especially if you think like a lawyer because you are lawyer!