Classifying bus driver employees as contractors turns out to be costly

A recent decision in the Federal Circuit Court, where bus driver employees had been incorrectly classed as contractors, highlights the problem that many workers face when given an inaccurate status of employment.

Fair Work Ombudsman inspectors found that four bus driver employees of a small transport company were paid a flat rate of $22 per hour, despite working 12 hour shifts and on weekends. Three of the drivers were classified as contractors, rather than employees.

Company fined $89,250 for deliberately classifying bus driver employees incorrectly

Under the Passenger Vehicle Transportation Award 2010, the drivers were entitled to receive $38.94 per hour on weekends, and $48.68 per hour on public holidays.