Australia – Fair Work Ombudsman drops case against Foodora (News.com.au)

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Australia’s workplace watchdog, the Fair Work Ombudsman, has dropped legal proceedings against human cloud food courier Foodora, reports News.com.au. The Fair Work Ombudsman accused Foodora of implementing employment practices that resulted in the underpayment of workers as contractors rather than employees. However, today the ombudsman announced its case could not continue while Foodora was in administration without approval from the Federal Court or the administrator. The ombudsman confirmed it would not seek to continue proceedings. In June, the Ombudsman took Foodora to the Federal Court alleging two Melbourne bike riders and a Sydney driver were classed as “independent contractors” when they did the work of full-time employees. The Ombudsman said Foodora “breached sham contracting laws” and misled the workers about the nature of their employment. Foodora has also faced legal action involving a delivery rider who claimed he was unfairly dismissed after complaining about a lack of workers’ rights. In August, Foodora announced that it would cease operations in Australia and that it would go into administration. That same month, it was revealed that Foodora is facing claims of unpaid taxes and the company also owes money to its parent company Delivery Hero.

Source:: http://www2.staffingindustry.com/row/Editorial/Daily-News/Australia-Fair-Work-Ombudsman-drops-case-against-Foodora-News.com.au-47254

      

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