Fair Work Infoline: 13 13 94
Media Release
16 Feb 2010
Tasmanian resort faces court over alleged
underpayments and sham contracting
The Fair Work Ombudsman has launched a prosecution against the operators of a
Tasmanian resort for allegedly underpaying workers and engaging in sham
contracting.
Facing court is Maclean Bay Pty Ltd, a Brisbane-based company which operates
the Diamond Island Resort located at Bicheno on Tasmania’s east coast.
Also being prosecuted is Maclean Bay director and part-owner Wendy Ann Wells,
of Brisbane, who is allegedly involved in managing the Diamond Island Resort.
Documents lodged in the Federal Magistrates Court in Hobart allege Maclean Bay
underpaid several Diamond Island Resort employees thousands of dollars in
superannuation and annual leave entitlements.
It is alleged that Maclean Bay also breached the sham contracting provisions of
workplace laws by reclassifying several workers from ‘employees’ to ‘independent
contractors’.
Maclean Bay allegedly further breached workplace laws by dismissing several
employees who refused to accept the reclassification.
It is alleged a total of 12 workers were affected by the various breaches, including
cleaning, administrative and restaurant staff and a gardener.
Ms Wells was allegedly involved in all breaches committed by Maclean Bay.
Fair Work Ombudsman Tasmanian Director Glenn Jordan says the decision to
prosecute was made because of the seriousness of the alleged breaches.
The Fair Work Ombudsman alleges the company and Ms Wells committed several
breaches of workplace laws. The maximum penalty per breach is $33,000 for
Maclean Bay and $6600 for Ms Wells.
The Agency is also seeking Court Orders for Maclean Bay and Ms Wells to pay
compensation to the affected workers for the loss and damages suffered. The
case is listed for a directions hearing on March 12.
The Fair Work Ombudsman promotes harmonious, productive and co-operative
workplaces. It also monitors compliance and investigates breaches of national
workplace laws.
Employers or employees seeking assistance should contact the Fair Work Infoline
Media: Craig Bildstien, 0419 818 484. Ryan Pedler, 0434 365 924.
NEWS 
