Assignment Detail

Assignment ID: FG133233098

Case: Johnno and Abe were both 23 when they were engaged as truck drivers for AXIS Operations Pty Ltd. That was back in 1989. They drove trucks on a full-time basis for eight years when AXIS offered them the opportunity to become contractors and own their own trucks. Johnno and Abe were married at this stage and had young families. They agreed, both setting up partnerships with their wives and signing contracts for the purchase of a truck from AXIS. Johnno and Abe also each signed a contract with AXIS that set up a service obligation, for the delivery of products to customers. Johnno and Abe continued to work the usual full-time hours, taking annual leave over Christmas and New Year and on some school holidays. However, they were not paid for any time off. However, most Christmas breaks started off with AXIS making a bonus payment to all their workers, including Johnno and Abe. The payment was made based on the profits AXIS anticipated at year end. As family men, the two drivers did not take on any other delivery work for other distribution operators like AXIS, preferring to spend their weekends with their children.

The trucks Johnno and Abe bought were fitted out with specific fittings which safely held lighting products AXIS required them to deliver. AXIS provided these fittings and arranged for their installation. AXIS had a Work Rules Book that was given to all their drivers each year and updated annually. It contained rules about respecting others while working, prohibiting bullying and other offensive behaviours, as well as safety rules to do with not smoking during loading and delivery of products.

Johnno and Abe invoiced AXIS monthly for the deliveries they made, based largely on distance and volume of the delivery. Maintenance and running costs of the trucks were the responsibility of Johnno and Abe. Income earnt by Johnno and Abe was declared as partnership income for income tax purposes and split with the wives. Johnno and Abe worked for AXIS until 2021 when AXIS told both drivers they were no longer needed. Neither were given any notice. At this time the two truck drivers had paid off their truck loans but were shocked at being ‘let go’. They asked why they were no longer needed and were told they were too slow and did not pack their trucks as efficiently as needed to move higher volumes. Also, a lot of product had been written off that month due to accidental damage. Johnno had been in a minor accident and half of the products delivered to one AXIS customer were reported as chipped or cracked.

Question 1: Were Johnno and Abe employees, or another type of worker? Refer to decided cases.

Question 2: For the purposes of this part of the assignment, assume Johnno and Abe are employees: Have AXIS breached Federal legislation when they terminated the employment of Johnno or Abe without notice?