Fair Work Ombudsman
Citation: FWO-2023-03-10-proclean-litigation-media-release
At a glance
- Respondent
- ProClean HQ Pty Ltd
- Penalty
- $124,202
- Employees affected
- 5
What happened
The Fair Work Ombudsman has commenced legal action against Timothy Baxter Chambers and Craig Richard Simpson, former directors of ProClean HQ Pty Ltd. The company provided cleaning services at Sydney Trains’ Auburn Maintenance Centre and went into liquidation in 2021. The investigation began after concerns were raised about underpayments. It is alleged that five migrant cleaners from Sri Lanka and Nepal, aged between 19 and their early 20s, were underpaid a total of over $125,000 between February 2018 and April 2019. ProClean HQ allegedly misclassified them as independent contractors, requiring them to obtain Australian Business Numbers and sign agreements for flat rates of $20 to $22 per hour.
What was decided
The Fair Work Ombudsman alleges ProClean HQ breached the Fair Work Act through sham contracting and underpayment. The cleaners were allegedly misclassified as independent contractors, denying them entitlements under the Cleaning Services Award 2010. The FWO is seeking penalties against Chambers and Simpson, and orders for them to rectify the alleged underpayments, plus superannuation and interest. The company is in liquidation, so the FWO cannot seek penalties or compensation against it. A directions hearing is pending in the Federal Court.
What it means for employers
Employers must correctly classify workers as employees or independent contractors. Misclassifying employees as independent contractors to avoid paying entitlements is considered sham contracting and carries significant penalties. Employers should review their contracting practices and ensure compliance with the Fair Work Act.
What it means for employees
Migrant workers are particularly vulnerable to exploitation. Employees should be aware of their rights and seek advice from the Fair Work Ombudsman if they suspect they are being misclassified or underpaid. Workers should keep records of their hours and pay.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections