A Sydney bus operator has been penalised over $89,000 for underpaying four of its drivers by misclassifying them as contractors, instead of employees.
Fair Work inspectors found that Eagle Tours – a shuttle bus service for Sydney Trains – paid a flat rate of $22 an hour to four of its drivers despite their 12-hour shifts, including on weekends.
The FWO said the drivers were underpaid their casual loading, overtime and penalty rates for weekends and public holidays – when they were entitled to receive up to $48 an hour.
When the matter was brought before the Federal Circuit Court of Australia in May 2017, Eagle Tours accepted it contravened the law and the court declared that the business underpaid the drivers by over $46,000 between November 2012 and February 2014 with individual amounts ranging from $7,982 to $15,960.
Judge Robert Cameron rejected Eagle Tours’ submission that the breaches were due to a lack of awareness of its obligations under workplace laws.
“All the relevant actions were intentional and not accidental. They were, for present purposes, deliberate,” Judge Cameron said.
Judge Cameron said there was a need to impose a penalty to “discourage other businesses from believing that all bus drivers may be hired as contractors regardless of the true nature of their engagement.”
Fair Work Ombudsman Sandra Parker said that the regulator is cracking down on companies that misclassify employees as independent contractors.
“If employers misclassify employees as independent contractors to avoid their lawful obligations or to pay employees low flat rates that undercut the minimum wage, they face serious consequences such as court action, hefty back-payment bills and penalties,” Ms Parker said.
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