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ARTICLE · 17 JUNE 2020

Policy Coverage Spotlight: Employer Underpayments Claims And Class Actions

Employers continue to be subjected to a lengthening list of underpayment class actions, as litigation funders who are looking...

United KingdomEmployment and HR

Employers continue to be subjected to a lengthening list of underpayment class actions, as litigation funders who are looking for new sources of profit explore the benefits of a number of recent employment law decisions.

This trend has continued in the recent decision of the Full Federal Court in WorkPac Pty Ltd v Rossato [2020] FCAFC 84 where the case made national headlines for confirming that an employee engaged as a casual can still be considered a permanent employee despite there being a contract of employment stating otherwise.

Refer to our earlier publication on this decision

As a result, a series of class actions have now been announced targeting companies and labour hire firms that use long term causal employment contracts.  The case highlights a growing risk to employers from underpayment class actions.

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