Workplace Report (July 2008)

Law - Contracts

Contract law

This month’s cases cover employment status, continuity of service, unlawful deductions and changes in terms and conditions.

Contract law —

The key developments

• A “partnership agreement” was a sham when the individual had to attend work every day and was paid directly; he was an employee (case 1).

• A casual worker who had the option of turning down work when it was offered had the necessary continuity of service to bring an unfair dismissal claim even though there were gaps between periods of work (case 2).

• A worker was not necessarily entitled to compensation even though their employer had failed to allow them rest breaks (case 3).

• Employment contracts had not been performed illegally when the employees had not made any misrepresentations of fact (case 4).

• There had been no agreement to change the contract when the union had not agreed and the workers were working under protest so the original terms remained (case 5).

• When an employer decided to withdraw a job offer after it had been accepted they only had to pay the employee notice for the length of notice they would have to give had the employee started work (case 6).


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