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Fair Work Ombudsman to prosecute Jetstar for engaging Australian cadets under NZ laws, 03 April 2012
The Fair Work Ombudsman commenced legal action yesterday against three Jetstar entities for engaging trainees under NZ laws when they should have been recruited under Australia’s legal regime.
Six trainee pilots were recruited between October 2010 and January 2011 under the “Jetstar Cadet Program”. Four of the cadets were Australian. The cadets all received six months’ training in Australia.
During the training period, Jetstar represented to the cadets that their employment was governed by NZ laws and engaged them on NZ individual contracts. The Australian cadets were told to open up NZ bank accounts and apply for NZ tax file numbers. The individual contracts provided that they would be paid in NZ dollars.
The Ombudsman claims that their employment should have been governed by Australian law, specifically, the Air Pilots Award 2010 (Air Pilots Award). Further, the Ombudsman claims that Jetstar failed to pay the cadets superannuation under Australia’s superannuation charge legislation.
After the training period had ended, Jetstar sought to have the employees pay back the costs of the training which is prohibited under the Air Pilots Award. The cadets reimbursed Jetstar a total of $17,500.
The Ombudsman intervened in the matter following a complaint which was lodged by the Australian and International Pilots Association (AIPA) in May 2011. In response, Jetstar returned the money to the trainees and engaged the cadets on Australian common law contracts.
The Ombudsman is alleging multiple breaches of the Fair Work Act 2009 (Cth) and the Air Pilots Award and seeking penalties.
Commenting on the prosecution, Nicholas Wilson, Ombudsman, said:
Fair Work Ombudsman to prosecute Jetstar for engaging Australian cadets under NZ laws, 03 April 2012
The Fair Work Ombudsman commenced legal action yesterday against three Jetstar entities for engaging trainees under NZ laws when they should have been recruited under Australia’s legal regime.
Six trainee pilots were recruited between October 2010 and January 2011 under the “Jetstar Cadet Program”. Four of the cadets were Australian. The cadets all received six months’ training in Australia.
During the training period, Jetstar represented to the cadets that their employment was governed by NZ laws and engaged them on NZ individual contracts. The Australian cadets were told to open up NZ bank accounts and apply for NZ tax file numbers. The individual contracts provided that they would be paid in NZ dollars.
The Ombudsman claims that their employment should have been governed by Australian law, specifically, the Air Pilots Award 2010 (Air Pilots Award). Further, the Ombudsman claims that Jetstar failed to pay the cadets superannuation under Australia’s superannuation charge legislation.
After the training period had ended, Jetstar sought to have the employees pay back the costs of the training which is prohibited under the Air Pilots Award. The cadets reimbursed Jetstar a total of $17,500.
The Ombudsman intervened in the matter following a complaint which was lodged by the Australian and International Pilots Association (AIPA) in May 2011. In response, Jetstar returned the money to the trainees and engaged the cadets on Australian common law contracts.
The Ombudsman is alleging multiple breaches of the Fair Work Act 2009 (Cth) and the Air Pilots Award and seeking penalties.
Commenting on the prosecution, Nicholas Wilson, Ombudsman, said:
“Multi-national companies with wholly or partly-owned overseas enterprises need to exercise caution and care if they engage workers under those entities and then have them work in Australia.”
Captain Barry Jackson, President of AIPA, welcomed the news of the prosecution, stating that:
“If Jetstar and other Qantas subsidiaries are allowed to operate in Australia, yet legally hire cadets overseas to avoid employment conditions here, then things will start to slide pretty fast. Thankfully, the Fair Work Ombudsman has shown Jetstar’s management they will not be able to get away with this as easily as they might have originally hoped.”
The matter is set down for a directions hearing on 27 April 2012.
