Beruflich Dokumente
Kultur Dokumente
Mr Michail Kaseris
v
Rasier Pacific V.O.F
(U2017/9452)
[1] Mr Michail Kaseris has applied under s.394 of the Fair Work Act 2009 (the
Act) for an unfair dismissal remedy. On 29 August 2016, he entered into a
services agreement, including service fee addenda (explained further below),
with Rasier Pacific V.O.F (the Respondent). The Respondent provides a
software platform which essentially allows motor vehicle drivers to connect
with members of the public requiring transportation services. The software
platform is commonly known as “Uber”. The Applicant alleges that he was
dismissed by the Respondent on 11 August 2017. 1
[3] I have concluded that the Applicant is not an employee within the meaning
of s.386(1)(a) of the Act and accordingly, is not able to pursue this application.
The reasons for this conclusion are discussed in the latter part of my decision.
Riders
[7] The Rider App is the dedicated application for people who want to request
what is commonly known as a “trip”. In order to use the Rider App an
individual must create an account and register their contact and payment details
within the application. 12 Once registered, an individual must accept the terms
and conditions of use and if and once they are accepted, the individual is then
able to use the application to request a trip.13 In order to request a trip, the
Rider must open the application on their smart phone, provide their pick up and
drop off location and then select the category of vehicle they want to ride in
(discussed below at [8].14 Once these details have been provided, the Rider is
given an estimate of the fare for the trip as well as an estimated time of arrival
of the Driver.15 If the Rider is happy with the estimated fare and the Driver,
the Rider confirms the request for the trip.16
[8] In Victoria, a Rider has a range of options about the type of vehicle in
which the Rider wishes to travel. 17 Presently, the following options are
available:
• uberX – any motor vehicle that meets the minimum requirements of the
Respondent);
Drivers
[9] The Partner App is the dedicated application for people who want to
provide transportation services to Riders. In order to use the Partner App, the
first step that a prospective Driver needs to complete is to set up an account in
the application. 19 Once an account has been set up, the prospective Driver
must go through an activation process, which involves submitting a number of
formal documents, including a valid driver’s licence, driving history check and
motor vehicle insurance to the relevant authority (in Victoria, the relevant
authority is the Taxi Services Commission).20 The prospective Driver must
also select which kind of Uber service, referred to at [8], they want to
provide.21 Once all of the mandated documents have been submitted to the
relevant authority, they are electronically uploaded into the systems owned by
Uber and are reviewed for compliance with Uber’s minimum standards.22 The
review process broadly involves verifying and reviewing the documents lodged
by the prospective Driver, conducting a driving history and criminal check,
reviewing the results of those checks and confirming that the motor vehicle
identified by the prospective Driver meets the minimum requirements for the
service delivery option nominated and that the registration for the vehicle is
valid.23
[10] If the application is approved, the final step that a prospective Driver must
complete before he or she can accept trip requests via the application is to
accept the terms and conditions contained in a services agreement. 24 For
prospective Drivers who wish to provide trips in the uberX option, as was the
case with the Applicant, this is a services agreement with the Respondent
(Services Agreement).25 Once a driver account is activated, an individual must
accept the terms and conditions in the Services Agreement which is contained
in the Partner App.26 If the individual accepts the terms and conditions, they
are then able to accept trip requests via the Partner App.27
Rider Requests
[13] When a Rider makes a request through the application for a trip, the
request is sent to a Driver who is actively logged onto the Partner App and is
either not on a trip or is nearing the end of a trip with another Rider. 35 The trip
request is communicated to a Driver as a pop-up notification in the Partner App
and the notification includes the name of the Rider, the Rider’s rating and the
pickup location.36 The Driver who receives the notification can either accept or
ignore a request.37 If a Driver accepts the request they may do one of four
things:
[14] A Rider is also able to cancel a trip request either before or after a request
has been accepted by the Driver and in certain circumstances, this may also
mean that the Rider is charged a cancellation fee. 39
Trips
[15] Once a Driver has accepted a trip request from a Rider, the Driver
proceeds to the Rider’s pickup location and once the Rider has been picked up,
the trip commences and the Driver selects “Start Trip” in the Partner
App. 40 The Driver takes the Rider to the destination and once the Driver has
arrived at the destination, the Driver selects “End Trip” in the Partner App.41
[16] At the cessation of the trip, the payable fare is communicated to the Rider
via the Rider App and is charged to the credit card that is registered in the
Rider’s account. 42 A receipt reflecting the amount charged is also sent by
email to the Rider.43
[17] At the end of each trip, both the Driver and the Rider are invited, via the
respective applications, to “rate” the other party. 44 The rating is provided as a
number out of a possible five.45 Riders are also able to provide comments if
they wish.46
13.2 You have no authority to bind Rasier Pacific and/or its Affiliates
and you undertake not to hold yourself out as an employee, agent or
authorized representative of Rasier Pacific and/or its Affiliates. Where,
by implication of mandatory law or otherwise, you may be deemed an
employee, agent or representative of Rasier Pacific or an Affiliate of
Rasier Pacific, you undertake and agree to indemnify, defend (at Rasier
Pacific’s option) and hold Rasier Pacific and its Affiliates harmless from
and against any claims by any person, entity, regulators or governmental
authorities based on such implied employment, agency or representative
relationship. The indemnity set out in this clause 13.2, insofar as it
relates to a finding by a judicial body or legislative authority of
competent jurisdiction that there is an employment relationship between
you and Rasier Pacific or an Affiliate of Rasier Pacific, applies only to
that proportion of Rasier Pacific’s liability that directly or indirectly
relates to you holding yourself out to be an employee of Rasier Pacific or
any of its Affiliates, or any other act or omission by you that is not
expressly authorised by Rasier Pacific and would reasonably suggest to a
third party that you are an employee of Rasier Pacific or any of its
Affiliates. You expressly agree that where required or implied by
applicable law or otherwise, you may be deemed an employee, agent or
representative of Rasier Pacific or an Affiliate of Rasier Pacific, any
payments made to you will be taken to be inclusive of (i) superannuation
contribution amounts; and (ii) amounts equivalent to all taxes (including
but not limited to income taxes) payable by you in respect of those
payments, in each case that Rasier Pacific (or any of its Affiliates) may
otherwise be required to pay under applicable law.
13.3 You expressly acknowledge and agree that by agreeing to the terms
and conditions of this
[21] Use of the Partner App by a driver is flexible and allows a Driver freedom
to choose how and when the Driver works. A Driver is able to log on and log
off the application whenever he or she chooses and the Respondent does not
impose any minimum period that a Driver must be logged on to the
application. 50 Additionally, the Respondent does not impose any disciplinary
procedures on a Driver if a Driver chooses not to log onto or not log off the
Partner App.51
[23] A Driver also has discretion as to the areas or locations within which the
Driver wants to provide trips, however, the Driver must remain within the State
in which the account is active and must be within areas that the Rider App is
available. 56
[25] Riders pay Driver’s a fare for each trip that a Driver provides. 58 A fare is
made up of multiple components including a base fare component, a time and
distance component and a booking fee component.59 A minimum fare also
applies and there may be additional charges for tolls, taxes or other fees such as
airport charges.60 A cancellation fee of $10 may also be charged to a Rider if
the Rider cancels a trip request five minutes after making the request and the
Driver has accepted the request and is proceeding to the Rider’s location.61
[27] The Respondent remits the fares and cancellation fees, after deduction of a
service fee which is discussed below, to the Driver on a weekly basis and, since
February 2017, at the request of a Driver at any time. 66
[29] The Service Fee is the only payment that is made by a Driver to the
Respondent.
Service Standards
[31] In order to assess whether a Driver meets the service standards, the
Respondent relies on Rider’s ratings of the Driver. 72 The ratings are averaged
to provide an overall rating.73 If a Driver is failing to meet the service
standards, the Respondent may deactivate the Driver’s account and only
reactivate it if it is satisfied that the Driver has taken steps to improve the
quality of the service.74 Although Drivers are required to meet service
standards, they are otherwise able to provide a trip in any manner they deem
appropriate.75
[32] The Respondent does not provide any of the equipment (save for the
technology platform) that is required by a Driver to enable the provision of
transportation services. A Driver is required to supply and maintain his or her
own vehicle in accordance with the service option that the Driver chose, and to
which earlier reference has been made. 76 Additionally, a Driver uses his or her
own smartphone or similar device which requires access to a wireless data
plan.77 It is the Driver’s responsibility to bear the cost of operating the device
and wireless data plan.78
Insurance
[34] Clauses 8.2 and 8.3 of the Services Agreement deal with the kind of
insurance that a Driver must maintain whilst providing transportation services
and provide the following:
In relation to the Transportation Services, you agree that you are not an
employee, or a worker or a deemed worker for the purposes of any
workers compensation laws and therefore acknowledge that Rasier
Pacific does not, and is not required to, maintain or provide you with
workers’ compensation insurance or maintain other occupational
accident injury insurance on your behalf. You agree to maintain at your
cost during the term of this Agreement workers’ compensation insurance
or other occupational accident injury insurance (or the local equivalent)
as required by any applicable law in the Territory (provided that the
foregoing shall have no impact on the mutual understanding between
you and Rasier Pacific that you are a self-employed individual (including
from a labour and social security perspective)) and otherwise comply
with all statutory workers compensation requirements. If permitted by
applicable law, you may choose to insure yourself against industrial
injuries by maintaining occupational accident insurance in place of
workers’ compensation insurance. Furthermore, if permitted by
applicable law, you may choose not to insure yourself against industrial
injuries at all, but do so at your own risk.” 81
[35] Clause 12.2 of the Services Agreement states that either the Respondent or
a Driver can terminate the Services Agreement at any time. 82 When the
Services Agreement is terminated, a Driver’s account in the Partner App is
deactivated.83 Clause 12.2 also states that the Respondent may terminate the
Services Agreement at any time, without notice, if the Driver no longer meets
the legislative requirements under the applicable law or the standards and
policies of the Respondent, such as the Deactivation Policy.84
• if the Driver's account in the Partner App is associated with fraudulent
activity;
• if the Driver does not follow the Community Guidelines, which are
applicable to Riders and Driver-Partners. 85
[38] On 29 August 2017, the Applicant entered into the Services Agreement
with the Respondent. The Applicant provided all of the mandated
documentation to the Respondent including vehicle registration, insurance
certificates and proof of identity. On 11 August 2017, the Respondent
deactivated the Applicant’s access to the Partner App for reasons which are
outlined further below. 86
• logged into the Partner App on multiple occasions on some days and did
not log in at all on others;
• provided varying numbers of trips when he was logged into the Partner
App, including providing no trips on some occasions when he was
logged into the Partner App;
• did not accept 33% of the trip requests sent to him via the Partner App
(that is, 2,961 of a total of 8,877 sent); and
• cancelled 15% of the trip requests that he had received and accepted via
the Partner App (that is, 804 of the 5,542 he had accepted). 87
Legislative Framework
[43] A person is only protected from unfair dismissal under the Act, if the
person is an employee as defined. This notion is further qualified by the
specific requirements of s.382 of the Act, which are expressed as follows:
[44] Section 380 makes clear that “employee” in Part 3-2 of the Act in which
s.382 is found means a national system employee. However, in the case of an
employee in Victoria, as Victoria is a referring State within the meaning of
s.30B of the Act, the extended meaning of national system employee in s.30C
applies. In effect, with the exception of a limited number of senior public
servants and office holders in Victoria, persons who are “employees” whether
or not employed by a national system employer fall within the provisions of
Part 3-2 of the Act.
Consideration
[46] It is well established that the unfair dismissal provisions in Part 3-2 of the
Act apply to a person who was at the time of the dismissal, an employee as
defined. It is evident from the legislative scheme the scope of persons who will
fall within the definition will depend on,inter alia, whether the State in which
the person was, at the time of the dismissal, a referring State, and the extent to
which persons in that State, who are otherwise not within the narrow definition
of a national system employee, are included in the referral of legislative power
from the relevant State to the Commonwealth. There are also well established
case law principles that have been developed by the courts and this tribunal to
determine whether an individual is an employee. The courts have developed a
multi-factorial approach, in which there is no single decisive criterion, to
determine whether a contractual relationship is one of employment or one
subject to a contract for services. 92 That approach is usually applied in two
areas where the distinction is important: first in disputes about the duties and
obligations owed by the contracting parties to each other; secondly in disputes
about whether one party is liable to a third party for injury caused by the other
party in the performance of the contract.93 The usual premise for the
application of this approach is the existence of a contract whereby one person is
engaged and paid by another for the provision of work or services, thus
requiring the contract to be properly characterised in order to determine the
parties’ rights and obligations. The various criteria or indicia about which have
account is under this multi-factorial approach, were comprehensively listed
in Jiang Shen Cai trading as French Accent v Do Rozario94, and have to a
significant degree been shaped by that employee/independent contractor
dichotomy.
[49] As discussed above, the ride-sharing application operates across two smart
phone applications. Riders and Drivers are connected through the applications
for the purposes of requesting and providing private transportation services.
The Respondent submits that the Services Agreement between the Applicant
and the Respondent recorded a fairly simple business arrangement: in return for
payment of the service fee from the Applicant to the Respondent, the
Respondent provided lead-generation services and other ancillary services,
such as payment and collection processing, customer support and so on. 96
[50] The Respondent says that there are particular terms contained within the
Services Agreement that decisively support the existence of an independent
contractor relationship, including:
(c) sub-clause 4.1 provided that the Applicant was entitled to charge a
fare for each transportation service (referred to in Mr Groeneveld's
statement as a "trip") provided to a Rider, the Applicant appointed the
Respondent as his "limited payment collection agent solely for the
purpose of accepting the fare" and that the Applicant agreed that
payment made by Riders to the Respondent shall be considered the same
as payment made directly by Riders to him. The sub-clause also made it
clear that the Applicant ultimately had the right to charge a fare less than
the maximum fare recommended by the Respondent;
(d) sub-clause 4.4 provided that in return for the Respondent providing
the Applicant with the "Uber Services" (including lead-generation
services, payment collection and processing services and support
services), the Applicant agreed to pay the Respondent a service fee on a
per transportation service transaction basis, calculated as a percentage of
the fare.” 97
[51] The Respondent submits that it is evident from the above extracts that the
wages-work bargain which is essential to an employment relationship is
missing. 98 The Respondent does not owe any legal obligation to the Applicant
except to provide access to the Partner App and remittance of the fares and
cancellation fees that the Rider pays to the Driver. None of this was seriously
challenged by the Applicant. The Respondent contends that on this point alone,
the Applicant’s application fails. I agree. It is, I consider, in this case clear on
the facts that these fundamental elements of an employment relationship did
not exist as between the Applicant and the Respondent. I briefly restate the
uncontested evidence set out earlier to make good this conclusion. First, neither
under the terms of the Services Agreement between the parties nor under the
arrangement as it operated in practice was the Applicant required to perform
any work or provide any services for the benefit of the Respondent. As the
evidence plainly establishes, the Applicant was free to perform as much or as
little work with it as he liked. In providing a transportation service to riders, the
Applicant did so when, where and for whom he saw fit, without any further
reference to the Respondent. In the provision of the transportation service to a
Rider, the Applicant was not performing any contractual obligation he owed to
the Respondent. Secondly, the Respondent did not make any payment to the
Applicant for the provision of any work or services. Rather, the Applicant was
charged a service fee by the Respondent calculated as an agreed percentage of
the fee paid by the Rider for the trip in consideration for certain services
provided by the Respondent to the Applicant to which reference has earlier
been made. The work-wages bargain is plainly absent. There was no
employment relationship between the Applicant and the Respondent with the
consequence that the Applicant was not an employee and was thus not a person
protected from unfair dismissal.
● Whether the worker performs work for others (or has a genuine
and practical entitlement to do so).
(5) Where a consideration of the indicia (in the context of the nature of
the work performed and the terms of the contract) points one way or
overwhelmingly one way so as to yield a clear result, the determination
should be in accordance with that result. However, a consideration of the
indicia is not a mechanical exercise of running through items on a check
list to see whether they are present in, or absent from, a given situation.
The object of the exercise is to paint a picture of the relationship from
the accumulation of detail. The overall effect can only be appreciated by
standing back from the detailed picture which has been painted, by
viewing it from a distance and by making an informed, considered,
qualitative appreciation of the whole. It is a matter of the overall effect
of the detail, which is not necessarily the same as the sum total of the
individual details. Not all details are of equal weight or importance in
any given situation. The details may also vary in importance from one
situation to another. The ultimate question remains as stated in (1)
above. If, having approached the matter in that way, the relationship
remains ambiguous, such that the ultimate question cannot be answered
with satisfaction one way or the other, then the parties can remove that
ambiguity a term that declares the relationship to have one character or
the other.
(6) If the result is still uncertain then the determination should be guided
by “matters which are expressive of the fundamental concerns
underlying the doctrine of vicarious liability” including the “notions”
referred to in paragraphs [41] and [42] of Hollis v Vabu. 100
Control
[54] In this application, the Applicant, on the evidence, appears to have had
complete control over the way in which he wanted to conduct the services he
provided. The Applicant was able to choose when to log in and log off the
Partner App, he had control over the hours he wanted to work, he was able to
accept or refuse trip requests (with some caveats) and he was free to choose
how he operated and maintained his vehicle. All of these factors weigh in
favour of an independent contractor relationship.
Equipment
[56] In this case, the Applicant is required to provide his own capital
equipment.. That is, in order to use the Partner App and charge fares, the
Applicant supplied his own vehicle, smart phone and wireless data plan.
Without these, the Applicant could not provide transportation services of the
kind he provided. Additionally, the Applicant at his own cost, maintained a
valid registration and full comprehensive insurance on the vehicle. Notably,
clause 8 of the Services Agreement provides that the parties agree that a Driver
is not an employee, a worker or a deemed worker for the purposes of workers
compensation nor does the Respondent maintain any workers compensation
insurance for that purpose. Registration, insurance and other like expenses are
in no way borne by the Respondent and this weighs significantly in favour of a
conclusion that the relationship was that of principal and independent
contractor.
Uniform
[57] The Applicant did not and was not permitted to display any of the
Respondent’s or its affiliates names, logos or colours on his vehicle. He did not
and was not required to wear any uniform or other clothing which illustrates to
the world that he was attached to or connected or associated with the
Respondent or the Uber brand. This is a factor that weighs against a conclusion
of an employment relationship.
[58] Clause 4.8 of the Services Agreement provides that the Applicant was
required to register for GST and remit all tax liabilities. The income received
by the Applicant was not treated by the parties as subject to PAYG tax. The
Australian Taxation Office (ATO) mandates that individuals who are engaged
in ride sharing must obtain an Australian business number, register for GST,
pay GST on the full fare, only claim GST credit related to transporting
passengers, lodge business activity statements and know how to issue a tax
invoice. 102 The Applicant, was expected to maintain his own private taxation
affairs and the Respondent does not deal with the Australian Taxation Office on
behalf of its drivers. The fact that the Applicant and all Drivers are expected to
pay their GST weighs in favour of an independent contractor relationship.
[59] During the proceeding the Applicant produced a document from the ATO
sent to the Applicant’s accountant. Put simply, the document provided that the
ATO’s records indicated that the Applicant was required to lodge a tax return
as his employer had withheld tax from payments made to him during the year.
On reviewing the document it appeared to be akin to a request to lodge a
Business Activity Statement (BAS). Notably, the document did not state the
employer’s identity. The Applicant did not call his accountant to give evidence
about the contents of the letter nor anyone from the ATO. During cross-
examination, the Applicant asked Mr Groeneveld whether the Respondent had
withheld any taxes whilst he was active in the Partner App and Mr Groeneveld
said it had not. 103 In any event, the letter does not establish an
employer/employee relationship as between the Applicant and the Respondent.
Description of relationship
Other indicia
[61] It is clear from the evidence that the Applicant does not receive a wage but
rather receives a proportion of the fee charged for the trip. It is also apparent
that the Applicant is responsible for his own taxation affairs and does not
accrue the usual concomitants of employment such as annual, sick and long
service leave. The Respondent also does not make any superannuation
contributions on behalf of or for the benefit of Drivers. These are matters which
all point away from the existence of an employment relationship.
[62] As to the question of the extent of any integration of the Applicant into the
Respondent’s organisation, although Drivers are necessary in order that the
Respondent can generate income, there is little material from which it may be
concluded that there is any significant integration. Ultimately, in this case, this
consideration is neutral.
[63] Through his witness statement and during the proceeding the Applicant
made a number of submissions which he says support the characterisation of
the relationship being one of employer/employee. Clause 4.1 of the Services
Agreement stipulates that a Driver can charge a lower fare if he or she wishes
to do so. The Applicant says that if he was truly an independent contractor, he
would be able to charge a lower or higher fare without being restricted by what
the Respondents Services Agreement. 104 That is a factor, but when weighed
against all of the indicia going the other way, it is not significant.
[64] As the transcript reveals, the Applicant made a number of other
submissions which are not reproduced here, but which, with respect, are not
relevant to the issue I need to decide. The Applicant also submitted that I
should take into account the recent United Kingdom decision of Aslam and
others v Uber B.V. and others 105 (Aslam) in which the Employment Tribunal
concluded that an Uber driver was a worker for the purpose of the Employment
Rights Act 1996 (UK) (ER Act).106 Although the Uber operations in both the
United Kingdom and Australia are similar, the legislation at issue in Aslam is
materially different to that which governs this application. Aslam was decided
on the basis of an expanded definition of a “worker” reproduced below, which
is self-evidently broader than the definition of an employee and encapsulates
some independent contractors. Relevantly, the ER Act defines a ‘worker’ as
follows:
(1) In this Act “employee” means an individual who has entered into or
works under (or, where the employment has ceased, worked under) a
contract of employment.
(3) In this Act “worker” (except in the phrases “shop worker” and
“betting worker”) means an individual who has entered into or works
under (or, where the employment has ceased, worked under)—
…”
Conclusion
[66] The notion that the work-wages bargain is the minimum mutual obligation
necessary for an employment relationship to exist, as well as the multi-factorial
approach to distinguishing an employee from an independent contractor,
developed and evolved at a time before the new “gig” or “sharing” economy. It
may be that these notions are outmoded in some senses and are no longer
reflective of our current economic circumstances. These notions take little or no
account of revenue generation and revenue sharing as between participants,
relative bargaining power, or the extent to which parties are captive of each
other, in the sense of possessing realistic alternative pursuits or engaging in
competition. Perhaps the law of employment will evolve to catch pace with the
evolving nature of the digital economy. Perhaps the legislature will develop
laws to refine traditional notions of employment or broaden protection to
participants in the digital economy. But until then, the traditional available tests
of employment will continue to be applied.
Appearances:
Mr M Kaseris, appeared in person
Hearing details:
2017.
December 8.
Melbourne.
4 Ibid
7 Ibid
10 Ibid
11 Ibid
13 Ibid
15 Ibid
16 Ibid
18 Ibid
21 Ibid
23 Ibid
25 Ibid
26 Ibid
27 Ibid
30 Ibid
32 Ibid
33 Ibid
34 Ibid
41 Ibid
43 Ibid
45 Ibid
46 Ibid
53 Ibid
55 Ibid
59 Ibid
60 Ibid
63 Ibid
65 Ibid
70 Ibid
73 Ibid
77 Ibid
78 Ibid
83 Ibid
91 Ibid
106 Ibid
107 An appeal from the decision of the Employment Tribunal was dismissed
see Uber B.V and others v Aslam and others (Appeal No. UKEAT 0056/17/DA