Background
Allegations as outlined in the ABCC’s statement of claim filed on 26 August 2010. The allegations may change during the course of the proceeding.
- Risetop Construction Pty Ltd (Risetop) is an ACT registered building company directed by Mika Rummukainen and Risto Rummukainen.
- Five formworkers worked for the company. Many aspects of the relationships pointed to the conclusion that the formworkers were employees.
- They were paid a regular wage and superannuation benefits and accrued long service leave. Risetop supplied the formworkers with workers’ compensation insurance, uniforms, protective clothing and some tools. Risetop directed the employees about work they should carry out.
- In June 2009, Mika Rummukainen and Risto Rummukainen called a meeting of the five formworkers at the company’s head office in Belconnen, ACT. Risetop’s accountant and insurance broker also attended the meeting.
- At the meeting, Risto Rummukainen told the employees they were considered to be independent contractors and he wanted to restructure the business so that they would be regarded “more openly as independent contractors.”
- Following the meeting, Mika Rummukainen sent the employees a letter that he signed and dated 17 June 2009. The letter stated that the workers were engaged by Risetop on a contract for services, i.e. as independent contractors rather than employees.
Alleged Contraventions
- The ABCC alleges that Risetop, Mika Rummukainen and Risto Rummukainen contravened s900(1) of the Workplace Relations Act 1996 by misrepresenting to each of the workers that he was an independent contractor.
ABCC Prosecution
- The ABCC filed a statement of claim in the Federal Magistrates Court at Sydney on 26 August 2010.
- A first directions hearing is scheduled for 21 September 2010.
Penalties
- The maximum penalties for a contravention of the WR Act are $6,600 for an individual and $33,000 for an organisation.