BULAW5911 - Fairfax Media - Agriculture - Particular Vulnerability - Contract law - Law Assessment Answer

BULAW5911 - Fairfax Media - Agriculture - Particular Vulnerability - Contract law - Law Assessment Answer

Assessment Task :

Case Study

Introduction and Background:
In August 2015, Fairfax Media published the findings of an investigation into wage fraud in Australian 7-eleven franchisee operations. The investigation claimed that thousands of casual workers and visa holders were:

•  Being paid below award wages
•  Working long hours but being poorly or not paid for that time
•  Being paid appropriately but being required to repay a proportion to their employer,
• thereby effectively being underpaid (cashback).

7 Eleven hired Allan Fels (previously head of the ACCC) to design a compensation scheme but later assumed control of the scheme. Since this first story broke, there have been other stories involving such and similar practices, emerging from energy (Caltex), fast food (Pizza Hut), agriculture (labour hire companies), supermarkets (sub-contractors under “chain arrangements”), hospitality (cafes and restaurants), construction (building and related trades) and aspects of the service industry (eg home, aged and child care). Given that a lot of the stories centred on the particular vulnerability of visa holders in Australia (including international students), the (Cwth) Joint Standing Committee on Foreign Affairs, Defence and trade held an investigation into the situation, in which it was reported that the Australian government had established a Migrant Workers’ Taskforce in October 201  chaired by Fels) and sponsored the Fair work Amendment (Protecting Vulnerable Workers) Act 2017. such moves, subsequent media and FWO investigations over 2018 have found continued legal non-compliance and exploitation in relation to Woolworths’subcontractors, a Refrigerated Transport operator, a Massage company, a Perth-based security company, several up-market Melbourne restaurants, a plumber and a domestic violence shelter……et al…...
Questions:

•  What, if anything, is different in an employment contract as compared to other types of contract such that they tend to attract higher levels of regulation and enforcement?
• What common factors can you identify in the exploitation cases that have been reported/investigated?
• Should there be freedom of contract in relation to employment contracts? Why or why not?
•  What risk management issues should an employer or potential employer consider when deciding on terms and conditions of employment?
•  Referring to one example of where employee exploitation has been identified, what steps should the employer have taken to address the legal risks of the situation?

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