Employsure Complaints

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We are aware of a number of complaints in respect of the business practices of a private company, Employsure, which is not a government organisation or associated with any government agency, and provide the below information in relation to recent regulatory action against Employsure.

If you want to make a complaint concerning Employsure, please use the resources at the section entitled "How to lodge a complaint" at the bottom of this page. 

The ACCC is taking Employsure to court over misleading advertising and unconscionable conduct allegations

Civil proceedings have been launched by the ACCC against Employsure Pty Ltd for allegedly misleading small business consumers that it was, or was affiliated with, a government agency when that was not the case.

Employsure In Court Over Misleading Advertising and Unconscionable Conduct Allegations

The ACCC alleges that Employsure engaged in the misleading conduct, in breach of the Australian Consumer Law, through its use of Google Ads campaigns and on its websites between January 2016 and November 2018.

Employsure's websites also prominently advertised call centre phone numbers for a 'Helpline' that provides free advice.

"The ACCC alleges that Employsure targeted small businesses who were seeking the free workplace relations helpline operated by the Government. Its primary objective was to sign these businesses up to long-term contracts with on-going fees," ACCC Commissioner Sarah Court said.

The ACCC also alleges that Employsure engaged in unconscionable conduct towards four small businesses between August 2015 and June 2018.

These small businesses contacted Employsure's call centre after searching Google for the Fair Work Ombudsman or a related government agency. The individuals believed they were speaking with someone from, or associated with, a government agency and agreed to a meeting with Employsure's staff on this basis.

During these meetings, the ACCC alleges that Employsure's staff emphasised the risks faced by the individuals including the possibility of fines or being sued by employees, in order to convince them that its services were necessary, pressuring the individuals to sign up to long-term contracts for a significant fee.

The ACCC also alleges that during the period November 2016 to at least October 2018, Employsure's contracts contained unfair terms, including terms that made it difficult for small businesses to exit the long term contracts.

The ACCC is seeking declarations, pecuniary penalties, injunctions, consumer redress orders for the four small businesses, corrective publication and compliance orders, and costs.

Source:    ACCC media release:Employsure in court over misleading advertising and unconscionable conduct allegations

FEDERAL COURT REGISTRY FILE DETAILS

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION v EMPLOYSURE PTY LTD ACN 145 676 026

Court: Federal Court of Australia, New South Wales Registry

Number: NSD2384/2018

Title: AUSTRALIAN COMPETITION AND CONSUMER COMMISSION v EMPLOYSURE PTY LTD ACN 145 676 026

Application Type: CONSUMER PROTECTION

Type: Mislead or Deceptive Conduct

Court record:     https://www.comcourts.gov.au/file/Federal/P/NSD2384/2018/actions

List of orders:     https://www.comcourts.gov.au/file/FEDERAL/P/NSD2384/2018/order_list

HEARING UPDATES

Justice Griffiths has set down a 2 week hearing in the Federal Court of Australia from 15 to 26 June 2020. From 10.15am.

For full details of court orders and events visit the Federal Court of Australia website:

Court record:        https://www.comcourts.gov.au/file/Federal/P/NSD2384/2018/actions

List of orders:        https://www.comcourts.gov.au/file/FEDERAL/P/NSD2384/2018/order_list

Fair Work Ombudsman Taking Action Against Employsure

In 2017, the Fair Work Ombudsman (FWO) issued a press release regarding Employsure, stating that it had received complaints relating to a website and telephone services operated by Employsure Pty Ltd. Read our related blog.

Source:  Fair Work Ombudsman Media Release

Supreme Court Rules Against Employsure

The NSW Supreme Court has ruled that Employsure was not entitled to seek payment for services over an entire 5 year period upon default of its client's payment on the basis that the provision requiring such payment was a penalty.  

Source:   http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWSC/2018/924.html

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How to lodge a complaint:

To report a business who may be doing the wrong thing under Australian competition and consumer law, contact:

ACCC Small Business Helpline

1300 302 021

Report a Consumer Issue Online

You can also contact Fair Trading/Consumer Affairs in your state/territory.

NSW Fair Trading

Call 13 32 20

www.fairtrading.nsw.gov.au

VIC Consumer Affairs

Call 1300 55 81 81

www.consumer.vic.gov.au/businesses/fair-trading

QLD Fair Trading

Call 13 74 68

www.qld.gov.au/law/fair-trading

SA Consumer and Business Services

Phone: 131 882

www.cbs.sa.gov.au

Or contact the relevant fair trading body in your state or territory.

Write to the Minister for Small Business

1. Go to: http://mfm.ministers.treasury.gov.au/contact/

2. Click 'Treasury Ministerial Correspondence form'

3. Type in your full name and postal address

4. In the field where it asks 'Minister you wish to contact' select 'Minister for Small Business' in the drop-down menu

5. Hit 'Submit'