Happy Cabby Drivers

The Decision by the Federal Circuit Court in a matter brought by the Fair Work Ombudsman in relation to a company called Happy Cabby Pty Ltd illustrates very clearly the importance of ensuring accurate record keeping in relation to employees. The importance of ensuring that an employee is categorised and paid as an employee and not treated as a contractor if they are not actually engaged as a contractor was central to this case.

The company was found to have incorrectly classified bus drivers as Independent Contractors rather than as employees, to have breached some of the provisions of the modern award system and also failed to maintain proper records. This resulted in fines of more than $286,000.00, including in the region of a $48,000.00 fine for one of the company directors in his personal capacity. The Cabby drivers were also awarded some $26,000.00 in respect of under paid wages.

This is a tricky area as there is not one simple rule which applies when determining whether staff are employees or Contractors and it is vital to ensure that you receive proper advice.