Fair Work Ombudsman Takes on Sham Contractor Activity in Adelaide
Wednesday 16 January 2013 @ 1.28 p.m. | Industrial Law
Penalties have been imposed on the perpotrators of sham contracting activity affecting several Adelaide teenagers.
The respective operators of a labour-contracting company and a fast food outlet in Adelaide were fined a total of $36,630 over sham contracting which related to two workers aged 15.
The penalties were imposed in the Federal Court in Adelaide as result of a prosecution by the Fair Work Ombudsman.
The case involved two labour-contracting companies hiring two 15 year old girls and classifying them as ‘independent contractors’, paying them below Award rates and them supplying them to work at a pretzel outlet which was charged labour-contracting company fees for their services. The teenagers performed various food preparation, customer service and cleaning duties at the pretzel outlet under instruction from the operators of the labour contracting company and others.
The Court found that the operators and the labour-contracting companies had used a contracting system that was not suitable for use with minors.
The operators and the labour-contracting company have admitted the conduct breached the sham contracting provisions of workplace laws because the teenagers were not self-employed contractors running their own businesses and should have been classified as employees.
The Fair Work Ombudsman is quoted as saying "the Court’s decision sends a message that sham contracting is a serious matter'.
Read more here.
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