A Federal Court judge has fined a fruit and vegetable farm in Stanthorpe, Queensland, $60,000 for creating a scheme aimed at avoiding workplace laws. The court found that the scheme was used to avoiding paying overtime rates to three fruit packers and a forklift driver amounting to $19,000.
Judge Joan Collier imposed a $50,000 penalty against Eastern Colour Pty Ltd, SB Employments and NB Employments and a further $10,000 penalty against Eastern Colour director Louisa Baronio, following an investigation and litigation by the Fair Work Ombudsman.
The court heard Eastern Colour devised a labour-hire scheme which effectively traded the workers between contractors when they reached 40 hours of work so overtime payments could be avoided.
Fair Work Ombudsman Natalie James said her agency filed the matter in September 2010 and was determined to show employers they had an obligation to comply with workplace laws in all circumstances.
“In this case, the court saw through the sham arrangement and the decision highlights that a business taking advice on this sort of anti-avoidance scheme risks a significant penalty,” said Ms James.
Source: weeklytimesnow.com.au
