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Underpayment claim for 4 months’ work results in $98,000 of penalties to employer and directors

A recent decision of the South Australian Employment Court, Sohel Rana v We4Us Pty Ltd, Masudur Rahman and Tanvir Ahmed, is a timely reminder to employers and company directors of the importance of defining a worker’s status, i.e. employee vs contractor, in accordance with the Fair Work Commission and ATO requirements.  In imposing the substantial penalties on the employer ($43,000) and its directors ($27,500 each), the Court was considerably concerned by the respondents’ failure to appreciate the seriousness of their actions. This included the complete failure to engage the Employee in accordance with the FW Act and Award. A key factor in quantifying penalties was the need for individual deterrence.

To view a summary of the case and decision, click here

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