Having a clear understanding of the differences between part-time, full-time, and casual employment is critical. Because the rights, entitlements and obligations may vary depending on the type of employment an employee is engaged under.

There are more than 100 Modern Industry Awards, however each Award will generally stipulate different minimum wages for each classification of an employee covered by that Award. Classifications of employees are determined with respect to the specific duties or skill levels of an employee under the Award, and higher classifications will attract a higher minimum wage.

Employees are entitled to benefits such as superannuation and leave whereas contractors are not. An employer may purport to disguise an employment relationship by instructing its employees to work via an ABN and advising them that they are contractors rather than employees. Where an employer engages in such arrangement, it is commonly referred to as a “sham arrangement”.

This decision is considered to be a major victory for all vulnerable workers who have been continuously underpaid. It provides assurance that, where a small claim proceeding under the Act is commenced, applicants are able to request the Court to make an order, not only against the employer, but also against third parties who were knowingly involved in the underpayments.