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Federal Circuit Court says company has case to answer for underpayment by subcontractor.

A company has failed to have a case summarily dismissed by claiming that it was not responsible for underpayment to workers by its subcontractor. The case was brought before the Federal Circuit Court by the Fair Work Ombudsman, and involves a South Australian company, Integrated Trolley Management (‘ITM’), one of many companies around Australia engaged to collect trolleys at various supermarkets. ITM subcontracts its services to Coastal Trolley Services (‘CTS’), who in turn subcontracts to South Jin Pty Ltd (‘South Jin’), the employer of the underpaid workers. The claim was made against South Jin as the employer and against CTS for accessorial liability.

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