Breathtaking Arrogance

"Breathtaking arrogance": TAS resort fined for exploiting staff Hospitality News June 1st 2012

1 June, 2012 Danielle Bowling 0comments 

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[pic 1]Diamond Island resort.Image: planbooktravel.com.au The operators of Tasmania's Diamond Island resort has been hit with a record $294,000 fine for deliberately exploiting employees.

The Federal Court of Melbourne handed down the penalty on 31 May after an investigation by the Fair Work Ombudsman.

A fine of $280,500 was handed down to Maclean Bay Pty Ltd which formerly operated the resort at Bicheno on Tasmania's east coast. A Brisbane woman, Wendy Ann Wells, owned the resort with her husband and was penalised an additional $13,860.

Justice Shane Marshall imposed the fines after finding that Maclean Bay had embarked on an unlawful sham contracting campaign aimed at converting Diamond Island resort employees into contractors to cut costs.

Sham contracting occurs when an employer attempts to disguise an employment relationship as an independent contracting relationship, thereby avoiding obligatory rates of pay and other entitlements

Marshall used the phrases "exploitation" abhorrent", "shameful", "victimisation", "breathtaking arrogance by an uncaring employer", and "conduct of a rogue employer which deserves to be met with the full force of the law" to describe the employer's actions.

Maclean Bay’s unlawful conduct - which occurred between December 2008 and April 2009 - affected nine employees and it was also found to have breached workplace laws by failing to pay thousands of dollars in superannuation and annual leave entitlements to a number of employees.

Justice Marshall said Wells was the "driving force and guiding hand” behind the conduct and found she had lied to workplace inspectors investigating the matter.

"Wells’ conduct was nothing short of disgraceful," he said.

Justice Marshall said it was a matter of great concern that the employees affected by Maclean Bay's conduct remain uncompensated and that the situation should be rectified as soon as possible.

"If that is not immediately possible from the resources of Maclean Bay, those who stand behind it should have the decency to attempt to remedy their corporate entity's failure to comply with the law rather than cowering behind the corporate veil."