TSA Telco in second legal battle

Former Water Corporation chairman Tim Ungar and business partner Peter Jones are locked in a Fair Work dispute with the previous general manager of their telecommunications business, Timothy Collins.

In October 2013, Mr Collins filed a breach of general protections in the Federal Circuit Court against Trimatic Contract Services, part of the TSA Telco Group controlled by Mr Ungar and Mr Jones.

TSA Telco operates a major contract supplying services to Telstra, and according to its website is the largest provider of telemarketing services to Telstra in Australia.

A breach of general protections can be made in relation to a range of industrial rights, including an unfair dismissal, for exceptional treatment, and non-provision of legal entitlements.

The dispute follows a 2011 Fair Work Ombudsman investigation, which led to court action against Mr Ungar, Mr Jones, and subsidiaries of the TSA Telco Group.

Those proceedings were commenced after complaints from former employees that TSC, which managed independent contractors for TSA, had misrepresented a proposed employment relationship as a proposed independent contracting arrangement.

A further alleged contravention was a failure to pay accrued annual leave to a terminated employee.

Almost 10,000 call centre workers and salespeople were reportedly classified incorrectly as independent contractors.

TSA and TSC changed their business model as a result of the court action, and signed an undertaking with Fair Work to change its labour engagement practices so that individuals performing contractor services would be employed as TSA employees, not independent contractors.

The latest dispute remains before the courts, and was most recently heard by Judge Jarrett in October this year.

The Federal Court has powers to enforce general protections laws, including issuing fines, ordering reinstatement or compensation, granting injunctions and awarding costs.

Mr Jones, Mr Ungar and Mr Collins did not comment on the matter.