ADELAIDE HOME CARE COMPANY LANDS IN HOT WATER

Written on the 20 May 2016

ADELAIDE HOME CARE COMPANY LANDS IN HOT WATER

AN Adelaide home care company will face court after its business model came under scrutiny for allegedly breaching sham contracting laws.

The Fair Work Ombudsman has commenced legal proceedings in the Federal Circuit Court against Care Providers Pty Ltd, which trades as ESAR Home Care.

Care Providers offers in-home personal care and domestic assistance services to elderly and people with a disability in Adelaide under contracts with local councils, government agencies and non-government organisations.

The workplace watchdog alleges the company contravened provisions of the Fair Work Act by deliberately or recklessly misclassifying four employees as independent contractors and underpaying them thousands of dollars.

Two personal care workers and two cleaners were underpaid a total of $8923 between February and September 2015, including allowances, superannuation, leave entitlements and penalty rates.

If successful, the company must repay penalties and perform an external audit of its workplace practices.

The breaches were the result of Care Providers using two companies it set up in 2014 to provide labour, Easttrac Pty Ltd and Klemtrac Pty Ltd. Prior to 2014, it used the same business model with Nortrac Pty Ltd before going into liquidation.

The company allegedly ignored advice from an accountant and solicitors that the workers might be employees not contractors and failed to comply with workplace laws.

Care Providers, Klemtrac and Easttrac each face maximum penalties of up to $51,000 per breach, while the owners face penalties of up to $10,200 each.

A directions hearing is listed for July 25.

 


Latest News

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

ADELAIDE DIGITAL MARKETING GURUS CHANGING THE FACE OF ONLINE RETAILING

Frank Grasso, CEO of Adelaide based Dynamic Creative, believes his company's new software will revolutionise Adwo...

WHY A JUNIOR MINER DECIDED TO JOIN THE RANKS OF THE HOT POT STOCKS

USUALLY, when a relatively unknown explorer experiences a sharp spike in its share price, it means they've fou...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter