This story was written by David Martin-Guzman and appeared in the AFR on January 9, 2019. Many of my clients are not big fans of recruitment agencies and this is a major problem for Hays. The stories I could tell you about Hays. But I digress. Always make sure you are being paid the correct amount if you were places by a recruiter or labour hire organisation.
"Class actions worth up to $50 million have hit top labour hire companies Hays and Stellar Recruitment over their allegedly unlawful use of casuals in the mining industry.
Canberra based law firm Adero Law launched the actions in the Federal Court at the end of last year, claiming the companies had underpaid thousands of workers leave and other entitlements for years.
The class actions kick off what is expected to be a barrage of legal cases over the next two months targeting the mining industry's allegedly systemic abuse of casual employment.
Hays, whose chief client was BHP Mitsubishi Alliance, is facing claims it was underpaying up to 1500 workers since at least 2014 because it engaged them as casuals rather than as permanent employees.
Under the black coal industry award, the use of casual employees is prohibited except through an enterprise agreement.
But despite Hays' expertise, the company bizarrely did not negotiate an EA that would have allowed it to legally use casuals.
While the class action has not specified a final compensation figure, lawyers estimate that Hays could be forced to pay between $30 million and $35 million.
Adero principal Rory Markham said Hays' lack of an EA was "bizarre given the liability continued to accrue. It seems odd that despite the amounts being claimed, they continue to engage people as casuals even when we put them on notice."