Grant Riethmuller, a Federal Circuit Court judge, discovered the violations were intentional as the Fair Work Ombudsman of 2012 made it a point for companies, Boxbay and Z Transport, that their bicycle couriers were not contractors but employees.
Fair Work inspectors found out that the courier were allegedly paid lower for the tasks he has done rather than obtaining higher entitlements and rates as an employee. He was supposedly entitled to receive minimum salaries and paid leaves as an employee under the Road Transport and Distribution Awards.
The inspectors claimed that he was supposedly underpaid of $7641 since February to November 2013.
The two courier company in Melbourne, Z Transport, which specializes in delivering products, and Boxbay, which provides labour services to Z Transport had been fined by the Federal Circuit Court. These companies were asked to pay the bicycle courier $36,000; however, the company owners were exempted from the fine, as they didn’tviolate the laws.
The public official said Boxbay admitted to underpaying the courier and infringing pay slip laws, which Z Transport was also involved.
According to Judge Riethmuller, “this was never a case where the events that transpired happened in recklessness, negligence, error or accident.”
Kristen Hannah, acting Fair Work Ombudsman said the company offered low tolerance for employers who participated in counterfeit contracting arrangements.
Ms. Hannah said, “the companies disguised themselves as unlawfully categorizing workers as independent contractors when they could have the exact entitlements as employees.”
“Employers like these two courier company in Melbourne have to be warned that they cannot ignore our recommendations. We have a variety of materials accessible in different languages and a devoted small business telephone service. So they can freely call us anytime for assistance and information.
“Information has been freely available with more details than there is today – so there is no time for excuses.” This is the reason why the courier companies have been penalized accordingly.