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Call Centre Charged Over Sham Contracting And Massive Underpayment

A Brisbane call centre company is being prosecuted for allegedly underpaying more than 100 workers a total of $46,000 and engaging in sham contracting.

Facing court is Contracting Plus Pty Ltd, which allegedly employed Brisbane CBD-based telemarketers to sell electricity services for its clients.

The Fair Work Ombudsman is also prosecuting Contracting Plus manager and sole director Randall David Rowe.

Underpaid minimum hourly rate

Documents lodged in the Federal Magistrates Court in Brisbane allege Rowe was involved in Contracting Plus underpaying 116 employees a total of $46,000 between 2006 and 2008 by underpaying the minimum hourly rate.

Rowe was allegedly involved in Contracting Plus breaching sham contracting provisions of workplace laws by classifying the employees as ‘independent contractors’ when their correct classification was as ‘employees’.

The Ombudsman alleges Rowe was also involved in Contracting Plus failing to keep employment records and failing to issue payslips in line with workplace laws.

Failed to rectify

Fair Work Ombudsman Queensland Director Julie Wade said the decision to prosecute Contracting Plus and Rowe was made because of the seriousness of the alleged breaches and the employer’s failure to rectify the matter.

The Fair Work Ombudsman alleges Contracting Plus and Rowe committed several breaches of workplace relations laws.

The maximum penalty per breach is $33,000 for the company and $6600 for Rowe for the underpayment and sham contracting matters and $5500 for the company and $1100 for Rowe for the employment record and payslip matters.
Article sourced from Workplaceinfo, A daily Bureau service for HR & IR professionals. For a free 14 day trial, contact us or click through on the free trial offer !
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