IRAC Analysis: AXIS Operations - Determining Employee Status & Rights

This case study examines the legal relationship between Johnno, Abe, and AXIS Operations Pty Ltd to determine whether they were employees or contractors. The analysis focuses on the circumstances surrounding their engagement, including the transition from full-time drivers to contractors, the level of control exerted by AXIS, the provision of equipment, the existence of a Work Rules Book, and the method of payment. The case applies the IRAC (Issue, Rule, Application, Conclusion) method to assess the relevant legal principles from decided cases and legislation to the facts presented. The study further explores whether AXIS breached federal legislation by terminating Johnno and Abe's employment without notice, assuming they are deemed employees. The conclusion is based on a comprehensive evaluation of the facts and applicable laws, providing a well-reasoned determination of their employment status and potential legal recourse.

PROJECT Question
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 on a full-time basis for eight years when
AXIS offered them the opportunity to become contractors and own their own trucks. Johnno
and Abe were married at this stage and had young families. They agreed, both setting up
partnerships with their wives and signing contracts for the purchase of a truck 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 two
drivers 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 specific fittings which safely held
lighting products AXIS required them to deliver. AXIS provided these fittings 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 to do with not
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 income tax purposes and split with the wives. Johnno and Abe worked
for AXIS until 2021 when AXIS told both drivers they were no longer needed. Neither 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 they
were too slow and did not pack their trucks as efficiently as needed to move higher 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.

(a) Were Johnno and Abe employees, or another type of worker? Refer to decided
cases.
(b) For the purposes of this part of the PROJECT, assume Johnno and Abe are
employees: Have AXIS breached Federal legislation when they terminated the
employment of Johnno or Abe without notice?
END OF QUESTION
This is a 1200 word paper that you need to produce.
Your PROJECT will be marked out of 30, having regard to how you have
followed the IRAC format, and as follows:
Identifying the legal issue/s 5
Discussing the Relevant legal principles (cases and/or
legislation)
1
0
Application of principles to facts and Conclusion 1
0
Presentation and referencing 5
Total 3
0
The APA style of referencing is to be used. However, footnoting is an alternative
satisfactory style. Full case and legislation citation is expected. See the Library guide on
APA referencing of legal materials, at http://libguides.murdoch.edu.au/APA/legal.