Nield v Mathieson
At a glance
- 1
- MA000198
What happened
Beth Mathieson worked at Marjorie and Keith Nield's mixed business (milk bar and takeaway) from May 2006 to February 2011. She initially worked as a casual for ~three months with wages paid. From August 2006 she lived on the premises and worked full-time for board and lodging plus $25/day (later ceased). She worked long hours, managed the business, and received no further wages for five years despite Centrelink entitlements after 2007. She also paid $20,000 to the Nields and lived in a property they owned as a tenant.
What was decided
The court held Mathieson was an employee throughout her entire engagement and entitled to Fast Food Industry Award 2010 rates from commencement. Award entitlements cannot be waived. The court ordered payment of $388,688.62 in underpayments including superannuation and annual leave, plus $20,000 for a contractual claim to recover money she had paid to the Nields, with interest on both amounts. The Nields' counterclaim for rental arrears was partly upheld but offset.
What it means for employers
Employers cannot avoid award obligations through informal arrangements such as board and lodging, despite agreement by employees. Employment status and award coverage are determined by the nature of the relationship, not voluntary labels. Long-term unpaid work exposes employers to massive backdated liability.
What it means for employees
Even informal or family-like arrangements with employers are employment relationships protected by awards. Underpayment compounds over time. Employees should insist on written agreements that comply with awards and retain records of work performed.
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