LAW 332 Assignment Question 2017
Jack Hewitt was engaged by Sally Winton to work as a boundary rider on her 200,000 hectare property called ‘Winton Station’ in far west New South Wales. Boundary riders are ordinarily required to travel over many weeks or months along the boundary of a property to check and maintain all the fencing, which includes using a device known as a ‘wire strainer’. Wire strainers are used for tensioning and repairing wire fencing, and in their normal operation, this device can carry pressure of several tonnes of weight. Maintaining the fences in good repair is essential to the management of Winton Station, where Sally runs a cattle grazing business.
Sally told Jack he would have to sign a ‘contractor’ agreement stipulating that their relationship was that of a principal and contractor and not that of employer and employee. She provides accommodation for Jack on the property in the form of boundary rider’s huts (although he often sleeps in his swag), all necessary tools and equipment (including but not limited to the wire strainer, fencing pliers and wire) and a quad bike. She is also responsible for the maintenance of all tools and equipment. Jack supplies his reliable stock horse to ride around Winton Station, his own saddlery, tack and swag and he wears his iconic Khaki shirt which bears the embroidered logo, ‘The Boundary Rider’.
Sally told Jack she would credit his bank account fortnightly with the agreed contracted sum of $1,000.00 per week, however Jack was to make his own arrangements for the payment of personal income tax or other tax associated with these payments, and he was to make his own superannuation contributions.
Sally also told Jack that he must take annual holidays during the November/December dry period, but apart from that he was free to choose how much travel to undertake in any given week and the order in which to patrol the borders of Winton Station to check and maintain the fencing. Jack was not required to report to her except on an annual basis.
The parties entered into the ‘contractor’ agreement on 1 July 2016 on the terms outlined above with a commencement date of the same date. Jack left Winton Station for six (6) weeks over the dry period. During this time he did not receive any payments from Sally.
Last month, Jack was repairing a fence on the southern border of Winton Station using a new wire strainer provided by Sally. Jack negligently failed to correctly secure the wire strainer and, under intense pressure, it came loose causing the wire to strike Tom Barnes who was, at that time, standing a few metres away on the adjoining property. As a result of the force, Tom sustained serious eye injuries including total loss of vision in his left eye. Tom works as a Jackaroo for the adjoining landowner.
Advise Sally with respect to her potential liabilities. Confine your analysis to the industrial/employment law issues which arise.
A formal essay style approach must be adopted. Do not write a letter of advice.