ARTICLE · 21 FEBRUARY 2011

HR managers, Misleading Deceptive Conduct, Employment Contracts

Gadens Lawyers

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In a recent decision of the Federal Magistrates Court of Australia, the director of a financial services company, and the company’s human resources manager, were held to have contravened various provisions of the Workplace Relations Act 1996 (Cth) in relation to independent contractor arrangements.

AustraliaEmployment and HR

Michael Cooper

Meryl Remedios

Contents

HR manager to be personally penalised for 'sham' independent contractor arrangements
A $300,000 lesson for employers on misleading and deceptive conduct
The importance of complying with employment contracts

HR manager to be personally penalised for 'sham' independent contractor arrangements

In a recent decision of the Federal Magistrates Court of Australia, the director of a financial services company, and the company's human resources manager, were held to have contravened various provisions of the Workplace Relations Act 1996 (Cth) (WR Act) in relation to independent contractor arrangements.

What happened?

Prior to mid 2007, the company had employed its sales team as employees however, in mid 2007 the company started to experience financial difficulties. As a result, the director of the company informed the human resources manager that he wanted all employees to become 'consultants' on a commission-only basis, rather than continuing to

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