$200,000 for ‘reckless’ hardship to vulnerable workers

Two companies have been penalised more than $200,000 for under­paying vulnerable aged-care and disability workers.

Two companies have been penalised more than $200,000 for under­paying vulnerable aged-care and disability workers, includ­ing a mother of four who went without food because she had enough money to feed only her children, not herself.

The Adelaide workers, who were unlawfully employed as independ­ent contractors, were not paid sick leave, annual leave, penalty rates, superannuation or for cancelled shifts, and some were forced to borrow money to keep power on at home or pay for petrol to get to work.

The Federal Circuit Court found contraventions of the Fair Work Act were “extremely reckless” rather than deliberate, imposing 30 per cent of the maximum penalty. That was discounted by 10 per cent because of the Fair Work Ombudsman’s handling of the investig­ation into Eastrac and Klemtrac.

The companies sent text messages to the workers, telling them they had to sign independent contract­or agreements, but the court found the representations were false because the workers were employees. Their duties included helping home-based elder­ly and disabled clients shower, go to the toilet and prepare meals, and taking them shopping and to other appointments.

The court found the firms had made a strategic decision “substan­tially for the purpose of saving money” and the impact of the breaches on the four workers was significant.

Natalie Augier, who had four children, took out income protection insurance that was particularly expensive, as she had a number of pre-existing medical conditions. “She found the taxation requirements complex and difficult and could not affor­d accounta­ncy fees to assist in managing the taxation and super­annuation requirements,’’ the court found.

“The inconsistency in her incom­e caused her to have difficulties in covering basic living expen­ses, like petrol … There were occasions when she only fed the children and not herself because of lack of money.

“There were times when she could not afford to pay utility bills and was forced to borrow money from her parents.”