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ARTICLE · 04 JULY 2011

Sales staff put on commission – sham contracting

Penalties levelled against Director and Human Resources Manager of liquidated company

AustraliaEmployment and HR

Fair Work Ombudsman v Centennial Financial Services Pty Limited & Ors [2011] FMCA 459 (21 June 2011)

Penalties levelled against Director and Human Resources Manager of liquidated company

The first respondent ('Centennial') was in the business of providing financial services. The second respondent, Mr Mertes, was Centennial's sole director and shareholder and was responsible for the day to day management and operation of its business. The third respondent, Mr Chorazy, was employed by a company in the Centennial group of companies as Centennial's human resources manager.

In 2007 Mr Chorazy recruited certain sales staff known as 'Corporate Associates' on behalf of Centennial. The Corporate Associates were employed on terms conforming to the Commercial Travellers Award. It was alleged that some of the Corporate Associates did not accrue and were not paid all their statutory entitlements during their initial period of employment.

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