Western Australian Industrial Relations Commission

Claim for unpaid wages dismissed as claimant was not an employee

The Industrial Magistrate has dismissed a claim for unpaid wages alleged to be owed under an oral contract of employment as the claimant was found not to be an ‘employee’ of the respondent for the purposes of the Fair Work Act 2009 (Cth) (FWA).

The claimant alleged he was employed by the respondent pursuant to an oral agreement to assist in providing business knowledge for the respondent’s new business and act as a salesperson at the store for an extended period.

The respondent denied the claim and argued that the claimant was never employed by the respondent, but was given a total of $5,500 by the business owner as a goodwill gesture for introducing a customer and providing advice on how to improve the business.

The Industrial Magistrate found, on examination of the evidence provided, there was no employment agreement, written or oral, between the claimant and respondent. Scaddan IM found, therefore, that the claimant was not an ‘employee’ pursuant to the FWA and the Industrial Magistrates Court does not have jurisdiction to make an order for payment of alleged unpaid wages.

Scaddan IM noted that the claimant’s evidence objectively showed that there was no intention to create legal relations between the parties involving the performance of work.

The claim was dismissed.

The decision can be read here.

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