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Hospitality app Supp classifies workers as contractors, raising entitlement concerns

Created at 8 Aug · 8:16 PM1 source↑ Market-relevant
IN SHORT

An Australian hospitality gig-work app, Supp, is facing scrutiny for classifying its users as independent contractors, potentially denying them entitlements like superannuation. Critics argue this arrangement may constitute unlawful 'sham contracting' and shift risk onto vulnerable workers.

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Key Numbers

2017Supp app launch year
12%Supp service fee surcharge
15,000Venues claiming to use Supp
200,000Workers claiming to use Supp
2021Year Daniel McBurnie began investigating entitlements
15Companies McBurnie was hired by as a contractor via Supp
$546,000Maximum penalty for sham contracting for large businesses
2022Start year for intermittent shifts for one unnamed worker
2025End year for intermittent shifts for one unnamed worker

Who's Involved

Supp
Australian hospitality gig-work app facing scrutiny over worker classification
Kate and Cameron Reid
Co-founders of Supp and owners of Lune Croissanterie
Daniel McBurnie
Worker investigating entitlement issues with Supp
Jordan Murray
CEO of Supp, rejecting sham contracting allegations
Cameron Reid
Co-founder of Supp, stating confidence in legal compliance
Imogen Szumer
Senior associate at Maurice Blackburn, commenting on employment law scrutiny
Fred Siggins
Melbourne bartender using Supp as a payment platform
Miranda Roop
Worker using Supp for bartending and front-of-house shifts
Pat O’Donnell
Director at United Workers Union, concerned about gigification of hospitality
Fair Work Ombudsman
Australian workplace relations regulator encouraged to audit Supp

↳ Why This Matters

The classification of workers as independent contractors by platforms like Supp can have significant financial and legal implications for both workers, who may lose out on essential entitlements, and businesses, which could face penalties for unlawful sham contracting.

Key facts

  • The hospitality recruitment app Supp classifies workers as independent contractors, requiring them to have their own ABN.
  • Concerns have been raised that this classification may lead to workers missing out on entitlements like superannuation.
  • Critics argue that the arrangement could be unlawful 'sham contracting' if workers lack autonomy and control.
  • Supp has denied allegations of misrepresenting working relationships and engaging in sham contracting.
  • Legal experts suggest that courts may find workers to be casual employees based on the level of control exerted by businesses.

Concerns are mounting over the Australian hospitality gig-work app Supp, which classifies its users as independent contractors, potentially leading to a loss of entitlements such as superannuation. Launched in Melbourne in 2017 by Lune Croissanterie owners Kate and Cameron Reid, Supp functions as a jobs marketplace connecting hospitality businesses with workers for ad-hoc shifts.

Supp requires workers to possess their own Australian Business Number (ABN) and describes them as individual contractors to the businesses hiring them through the platform. This classification is being questioned by workers and legal experts, who argue that the nature of the work often involves a lack of autonomy, control over hours and pay, and direct supervision, characteristics more aligned with employment than independent contracting.

Daniel McBurnie, a worker who began investigating his entitlements in 2021, stated that he was hired as a contractor for 15 different companies through Supp and never received superannuation. He argues that hospitality workers performing delegated tasks under supervision do not have the autonomy expected of independent contractors.

Supp has strongly rejected any suggestions of misrepresenting the working relationship or engaging in 'sham contracting,' which is unlawful under Australia's Fair Work Act and can result in significant penalties. Jordan Murray, Supp's CEO, stated the company engages constructively with regulators and supports clear standards for independent work, adapting its platform as the law evolves. Co-founder Cameron Reid expressed confidence in Supp's legal compliance due to regular reviews and regulatory engagement.

Imogen Szumer, a senior associate at Maurice Blackburn, noted that the description of the relationship as independent contracting is not determinative, and courts may find workers to be casual employees if they are subject to business control, use company tools, and follow procedures. Three other Supp users corroborated that they had not received superannuation or other entitlements.

Pat O’Donnell, director at the United Workers Union, voiced concerns about the increasing 'gigification' of hospitality work, arguing that convenience for employers should not compromise workers' rights, fair pay, and protections. McBurnie has called for the Fair Work Ombudsman to conduct an independent audit of Supp and its business users, suggesting it is a fairer approach than expecting vulnerable workers to dispute claims individually. The Fair Work Ombudsman declined to comment on Supp specifically but encouraged concerned workers to contact them or their union directly.

Frequently asked questions

Supp is an Australian hospitality gig-work app launched in 2017 that connects businesses needing staff for ad-hoc shifts with workers seeking employment.

The primary concern is that Supp classifies its users as independent contractors, which critics argue may lead to them missing out on employment entitlements like superannuation and other protections.

Sham contracting occurs when an employment relationship is misrepresented as an independent contracting relationship, which is unlawful in Australia and can attract penalties.

Casual employees typically have more entitlements, including minimum rates, casual loading, penalty rates, breaks, superannuation, and unfair dismissal protection. Independent contractors paid mainly for labour are also entitled to superannuation.

What Happens Next

01The Fair Work Ombudsman may consider auditing the Supp platform.
02Workers with concerns are encouraged to contact the Fair Work Ombudsman or their union directly.

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Cadence

How It Developed

Supp, a hospitality gig-work app launched in 2017, allows businesses to advertise shifts and workers to secure ad-hoc employment.
Workers using Supp are required to have their own ABN and are classified as independent contractors, not employees.
Concerns have been raised by a worker, Daniel McBurnie, that users may be missing out on entitlements such as superannuation.
McBurnie stated that workers lack autonomy, do not set their pay rates or hours, and report to supervisors.
Supp has rejected allegations of misrepresenting working relationships and engaging in sham contracting.
Legal experts suggest that if workers lack control and are directed by businesses, courts might find them to be casual employees.
Other Supp users have also reported not receiving superannuation or other entitlements.
The United Workers Union expressed concern over the 'growing gigification' of hospitality work and the potential for exploitation.

Sources

T1
Hospitality recruitment app Supp calls gig-workers contractors. Some users say it leads to casual work without entitlementsThe Guardian

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