Reference no: EM133420188

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 for AXIS on a full-time basis for eight years and were then offered by AXIS to become contractors and own their own trucks. Johnno and Abe are both married and have young families. Johnno and Abe agreed; they both set up partnerships with their wives and signed contracts for the purchase of two trucks 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 Johnno and Abe 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 a specific fit-out which allowed for secure storage of lighting products which AXIS required them to deliver. AXIS provided these fit-outs 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 requiring no 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 tax purposes and split with their wives. Johnno and Abe worked for AXIS until late 2022 when, to their surprise, AXIS told both drivers they were no longer needed. Neither Johnno nor Abe 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 by AXIS that they were 'too old and slow' and thus did not pack their trucks efficiently enough to move the required 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.

1. Were Johnno and Abe employees, or another type of worker? Consider Australian common law doctrine.

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? Consider both common law and statute.