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An Example of Sham Contracting in Food Industry (Read 226 times)
12. Jun 2018 at 16:54

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Dob in a Dodgy Operator

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Here is an example of Sham Contracting which happens frequently in the Security Industry.


Australia's Fair Work Ombudsman has launched legal action against online food delivery giant Foodora, accusing the company of sham contracting and underpayment.
Key points:

Foodora accused of not paying minimum wage and penalties to three staff
Workers did not have enough control over conditions to be contractors, ombudsman says
Company faces a $54,000 fine for every contravention of the Fair Work Act

In documents filed in the Federal Court, the ombudsman alleged the delivery service treated three of its delivery drivers as independent contractors when they were in fact employees of the company.

As a result the workers two from Melbourne and one from Sydney were underpaid the minimum wage rate, casual loading, penalty rates and public holiday rates.

Foodora is also accused of failing to pay superannuation.

The ombudsman estimated the alleged underpayment cost the three workers a combined total of $1,620.

The ABC contacted Foodora for comment.

The ombudsman argued the workers were employees due to the level of control, supervision and direction that Foodora had over the their hours and location of work, and the requirement that they wear a uniform.

It alleged the workers were not conducting their own delivery businesses because they did not advertise their work to the public and did not have a customer base or business premises.

"The activity of delivering food from restaurants and fast food outlets to customers is not new, and nor is the 'test' for what determines who is and is not an employee entitled to award rates," ombudsman Natalie James said.

"Courts have found again and again that merely labelling the relationship to be one of independent contracting does not make it so, and it is the substance of the relationship that decides the status of the workers and the regulatory requirements that flow."

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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