#1

Crowd Sourced Funding Off and Running:

Small to medium businesses can now access Crowd Sourced Funding (“CSF”) without having to change their structure and become an unlisted public company.

Previously, if a company had 50 or more non-employee shareholders, they had to become a unlisted public company, and with that comes a whole bunch of reporting requirements that can be onerous for smaller operations.

You can read more about CSF in my previous article on this topic.

Or you can read more on ASIC website here.

 

#2

Phoenix Operator Jailed:

I’ve previously written about the legalities surrounding Phoenix directors in Australia and that the Government was clamping down on directors moving assets around to avoid detection.

Recently, a WA businessman was sentenced to five years and four months in jail for obtaining nearly $900,000 via illegal phoenix activity.

While white collar crime causes no physical damage to citizens, it impacts the whole foundation on which an open market-based system operates and hence why a very strong stance is taken with perpetrators.

There is a newly established Phoenix Hotline if you suspect a business is using illegal phoenix activity. You can find out more here. 

 

#3

Sham Contracting: BEWARE

Australia’s biggest employment class action case is set to claim a potential $400m settlement. The plaintiffs are claiming they are victims of sham contracting. Telecommunication workers are alleging they although there were on official contracting agreements, the company they worked for had clear control of them by determining hours of work and the circumstances in which they could work for others.

A sham contracting arrangement is where an employer attempts to disguise an employee as a contractor to avoid paying entitlements.

Because sham contracting can result in employees being denied their workplace rights and entitlements, non-compliance is taken very seriously.

You can read the full article here.

 

#4

Foodora Rider Wins Unfair Dismissal Casecontact-youlegal

Last week, the now defunct food delivery company Foodora lost an unfair dismissal case which could have ramifications for other similar ride based service businesses. There has previously been similar cases brought against Ubur.

The main area where the Fair Work Commission took interest in this case was what Foodora called a “batch system” to assigning jobs.  This “batch system” fundamentally controlled when riders could work and therefore amounted to an employee / employer relationship (if we refer to the class action being mentioned above, we can start to see the continuing theme).

The Foodora business model underpins many of how “ride based services” operate. The FWC found in Foodora’s case it amounted to controlling.  In that they needed to have enough “workers” running any given shift to provide their service. This “controlling” of when individuals can work amounts to a employment relationship, making Foodora liable for employee entitlements.

Watch this space and in the impacts in may have on similar service based business models.

You can read the full article here.

 

 

If you have any questions as to how the above changes may impact your business, feel free to contact us.