Tasmanian Resort Faces Court Over Alleged Underpayments And Sham Contracting

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16th February 2010, 10:30am - Views: 948

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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


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


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

on 13 13 94 or visit www.fwo.gov.au For translations call 13 14 50.

Media: Craig Bildstien, 0419 818 484. Ryan Pedler, 0434 365 924.

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