Question
Body Images Pty Ltd (BI) is a beauty therapy company in Perth, Western Australia. They sell various beauty services to clients who want to improve
Body Images Pty Ltd (BI) is a beauty therapy company in Perth, Western Australia. They sell various beauty services to clients who want to improve their personal image. BI operates out of a square bright yellow building without windows, which is iconic and known for its striking colour. Sammy, aged 21, is one of their full-time beauty therapists. She signed an agreement at the end of 2020. It was to operate from 1 January 2021 until 31 December 2022. The agreement stated that she was not an employee but in business for herself, agreeing to offer her professional services on a casual basis when she wanted to. The agreement stated that she would be subject to an induction and would abide by all BI rules about service procedures and customer relations. She was also required to wear a shirt that had a BI embroidered logo and BI would stipulate an hourly rate for all services she performed.
Sammy also received a small bonus payment on a monthly basis if clientele numbers increased. Sammy paid tax on that income directly to the taxation department. BI recommends their workers register a business name for these purposes. Sammy had set hours and received a half price discount on BI services. BI have not trained Sammy or the other therapists; rather they have all attended a specialised training agency which was paid for by BI. BI have a social media policy that includes a prohibition on therapists posting comments that can be linked to BI or its clients. On December 1, 2022, Sammy posted a comment on Facebook about an "overly-hairy" and "obese" man who had come into her work for hair removal services, indicating he smelt bad and "left the yellow building smelling like sweat". One of BI's managers read the post dismissed Sammy the next day as soon as she arrived at BI's office. The same manager also noted that part of Sammy's dismissal was due to her online promotion of her own "home-run" weekends-only beauty therapy business specialising in eyebrow design. Using the IRAC method, advise Sammy in relation to the following questions. Ensure you refer to relevant legislation and case law for your answers. Answers the questions breifly
1. Is Sammy an employee or another type of worker?
2. If we assume Sammy is an employee, is the BI policy enforceable as a term, and has it been breached?
3. If we assume Sammy is an employee, is she in breach of any duty to BI in relation to her "home run" business?
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