Australian Hospitality Under Fire

In case you didn’t hear, around 700 staff employed by a major Australian hospitality group allege they were terminated and rehired by a different entity that doesn’t have to pay penalty rates. This occurred just days before this year’s Australia Day holiday.

The allegations come from hundreds of staff that claim they were forced into signing a contract with a new employer in the lead-up to the public holiday, where penalty rates would have applied. In signing, they signed away additional pay that would usually come with working on January 26. Safe to say, controversy ensued and the hospitality group is under fire in a “he-said-she-said” battle. 

The group’s (which we’ve chosen not to name) spokesperson defended the company’s position and decision. The representative stated no workers had been fired — staff had simply been “asked to consent to a reassignment of their employment”. 

Legally, it looks like no laws have been broken, but ethically, it’s a bit sketchy to say the least. What do you think?