Skip to content

  • Home
  • COVID-19 Guide
  • COVID-19 AV library
  • Client results
  • Expertise
  • News & Insights
  • People
  • Our DNA
  • Inclusion and Diversity
  • Join us
  • Contact Us
Home / NEWS & INSIGHTS / Insight / Staying classy – the new trend in employment litigation
Insight 28 June 2018

Staying classy – the new trend in employment litigation

WHO SHOULD READ THIS
  • Anyone who engages workers either directly or indirectly.
THINGS YOU NEED TO KNOW
  • There is an increasing trend in employment-related class action litigation in Australia.
WHAT YOU NEED TO DO
  • Ensure that workers engaged directly and indirectly are provided their full legal entitlements for their classification and employment status.

The trend towards employment-related class action litigation is continuing with the recent news that workers at BHP’s Mount Arthur Coal Mine are commencing class action proceedings against BHP subsidiaries and their labour-hire contractors alleging underpayment and misclassification of workers.

The claims are purportedly valued at more than $40 million. There is a strong suggestion that similar proceedings may be commenced against other coal mine operators and their contractors.

The development of plaintiff-friendly class action reforms across a number of Australian jurisdictions has seen an increase in class actions in recent years, particularly with the implementation of Part IVA of the Federal Court of Australia Act 1976 (Cth) and similar reforms in New South Wales, Victoria and Queensland.

Increasing public scrutiny of employment conditions off the back of the 7-Eleven underpayment claims, the rise of the gig economy (e.g. Uber, Deliveroo and Airtasker), and the increased utilisation of labour-hire workers is fuelling a rise in employment-related class action claims, or “representative proceedings” as they are more properly known.

Employment-related class actions are often commenced against multiple parties, including the alleged employer, as, pursuant to section 550 of the Fair Work Act 2009 (Cth), related-bodies corporate, principals and contractors can also be held liable for being “involved in” the alleged contraventions. This adds considerably to the complexity associated with defending proceedings of this nature. Plaintiff-backed media campaigns can further increase the corporate burden.

There are currently four “Employment and Industrial Relations” class actions in the Federal Court of Australia; one in the sales and marketing industry, one against a Commonwealth government employer and two in the mining industry, not including the BHP claim which is expected to be filed shortly. There are others in the state courts.

More are on their way.

The Fair Work Ombudsman, for example, recently commenced proceedings against food delivery and gig economy participant Foodora, alleging sham-contracting (i.e. improperly treating employees as contractors) and underpayment in relation to three workers. If successful, a class-action by other similar workers is on the cards.

We expect to see employment-related class action litigation continue to rise for some time.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.

About the authors

  • Scarlet Reid

    Partner
  • Jason Munstermann

    Partner
  • Tom Reaburn

    Senior Associate
  • Nathan Roberts

    Senior Associate

In other news

FIRB Reforms Article Series – Part 2: Family Arrangements

30 July 2020Insight

Are loan books next on the block for Australia?

29 July 2020Insight

Unlicensed parties beware – Head contractor exemption to be removed from QBCC Act

28 July 2020Insight

FIRB Reforms Article Series – Part 1: National Security Businesses

23 July 2020Insight

VIEW ALL NEWS & INSIGHTS

BRISBANE

Level 11, 66 Eagle Street
Brisbane QLD 4000
GPO Box 1855
Brisbane QLD 4001
Tel +61 7 3233 8888
Fax +61 7 3229 9949

 

GET IN TOUCH

    Contact form

    We handle your personal information in accordance with our privacy policy.

    sydney

    Level 32, MLC Centre
    19 Martin Place
    Sydney NSW 2000
    GPO Box 462
    Sydney NSW 2001

    Tel +61 2 8241 5600
    Fax +61 2 8241 5699

     

    GET IN TOUCH

      Contact form


      We handle your personal information in accordance with our privacy policy.

      melbourne

      Level 27, 101 Collins Street
      Melbourne VIC 3000
      GPO Box 2924
      Melbourne VIC 3001

      Tel +61 3 9067 3100
      Fax +61 3 9067 3199

       

      GET IN TOUCH

        Contact form

        We handle your personal information in accordance with our privacy policy.

        follow us

        CLIENT LOGIN

        newcastle

        Level 2, 16 Telford Street
        Newcastle NSW 2300
        PO Box 394
        Newcastle NSW 2300

        Tel +61 2 4914 6900
        Fax +61 2 4914 6999

         

        GET IN TOUCH

          Contact form


          We handle your personal information in accordance with our privacy policy.

          canberra

          Level 9, 2 Phillip Law Street
          Canberra ACT 2601

          Tel +61 2 6243 3699
          Fax +61 2 8241 5699

           

          GET IN TOUCH

            Contact form


            We handle your personal information in accordance with our privacy policy.

            © 2017 McCullough Robertson. Site map Disclaimer Privacy Policy Credit Reporting Policy

            X