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Wings clipped as phoenix rises from the ashes
A recent decision confirms the ability of the Court to sheet back liability against phoenix companies and their directors who seek to avoid their obligations to employees under workplace legislation. Background The employee commenced work with A1 Scaffolding Pty Ltd in 2005 as a scaffolder. The employee was continuously employed until 2013 by the following entities (in succession): A1 Scaffolding Pty Ltd; A1 Scaffolding (NSW) Pty Ltd; A1 Scaffold Pty Ltd; and A1 Scaffold Group Pty Ltd (A1). On each occasion the employee's employment was transferred to a new entity, it was due to the appointment of an administrator or liquidator to the prior entity. At no time during any of the transfers were the accrued entitlements of the employee, such as annual leave or long service leave, paid out to the employee or transferred to the new entity. In May 2013, the employee made an enquiry wi...
17 April 2015The label doesn’t stick - it's still a trading corporation
A recent High Court decision confirms that a state government legal entity cannot be removed from the reach of the Fair Work Act simply by declaring that it is not a body corporate.
Background
The Queensland Rail Transit Authority (the Authority) whose primary purpose is to supply labour to a related entity, Queensland Rail Limited (QRL) was established under the Queensland Rail Transit Authority Act 2013 (Qld) (the QRTA Act). The QRTA Act provides that the Authority is not a corporation. The intention of Queensland Parliament when drafting the QRTA Act was to remove Queensland rail employees from the operation of the Fair Work Act 2009 (Cth) (the FW Act).
Proceedings
The CEPU commenced proceedings seeking a determination that the Authority is a trading corporation within the meaning of section 51(xx) of the Australian Constitution (the
Full Court upholds compliance with drug policy
Background An employee engaged as a ferry master with Harbour City Ferries Pty Ltd (Harbour City) was called into work to replace another ferry master who was absent from work. On the previous day, the relieving ferry master had smoked marijuana for pain relief purposes. The ferry master was aware of Harbour City's zero tolerance drug and alcohol policy and its application, but did not decline to work the shift. Later in the shift, the ferry master crashed into a wharf, striking a pylon. After an investigation, Harbour City terminated the ferry master in line with its zero-tolerance policy. Please [click here] to read our prior article providing further background details. Prior decisions In the first instance, the Fair Work Commission found that although there was a valid reason for termination, the dismissal was unfai...
15 April 2015

