A class action against leading fundraising company Appco Group Australia, over the alleged exploitation of so-called “charity muggers”, will proceed, a court has ruled.
The company is accused of “sham contracting” — hiring workers as independent contractors rather than employees to avoid paying them the minimum wage and other entitlements.
Appco hires young sales reps as independent contractors via marketing companies. The workers, also known as “chuggers”, raise money for some of Australia’s biggest charities, as well as big-name companies and utilities.
More than 1,400 claimants around the country allege they were paid as little as $5 per hour for up to 80 hours per week.
Lead claimant Jacob Bywater alleges Appco breached the Fair Work Act 2009 by failing to pay him and other group members ordinary rates of pay and overtime, termination payments, superannuation, allowances and expenses.
Many also alleged they were subjected to bizarre and humiliating workplace rituals.
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