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

WOOLWORTHS CLAIMS LEGAL VICTORY IN STOUSH WITH LOWE'S

SUPERMARKET giant Woolworths (ASX: WOW) has been given the go-ahead to sell its Masters property assets after winn...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

PRICELINE STORE ROLLOUT BOOSTS API'S FULL YEAR PROFIT FORECAST

Australian Pharmaceutical Industries (ASX: API) has booked a rise in half year net profit of $29.1 million on the bac...

CITY DWELLERS SETTING EYES ON REDCLIFFE AS PROPERTY SEACHANGE BECKONS

IT MAY be cool by the sea at Redcliffe, however strong sales at Kyko Group's Mon Komo development prove that t...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

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