A company that arranged fundraising activities for charities is facing court and fines of up to $51,000 for underpaying a worker almost $8000.
The company, Australian Sales and Promotions, was fined $23,100 late last year for underpaying young sales workers and will face court a second time for alleged sham contracting.
The Fair Work Ombudsman said the company allegedly told a 26-year-old backpacker who was hired as a charity collector that he was an independent contractor operating his own business, instead of an employee.
He was underpaid $8000 as a result of not being correctly classified as an employee. Instead of being paid the minimum hourly rate and loadings as a casual employee, he was allegedly paid $50 to $67 a day plus commission.
The agency has launched legal action in the Federal Circuit Court against the company, which conducts fundraising activities for charities and not-for-profit organisations.
It is alleged the company required the worker to get an Australian Business Number and to invoice another company called PMA Unit instead of Australian Sales and Promotions.
The Fair Work Ombudsman has alleged the backpacker had never operated a business and had no sales experience. It was also alleged the company exercised a high level of control over his duties.
Fair Work Ombudsman Natalie James said the company had continued to represent employees as contractors despite being fined for breaching workplace laws late last year. She said employers could not simply call a worker a contractor under workplace laws.
"We allege that this company's non-compliance is of an ongoing nature and is deliberately designed to avoid paying employees their lawful entitlements," she said.
"Where we suspect misclassification or sham contracting is occurring, we will look behind the often carefully drafted legal documents to determine the true state of affairs for affected workers."
