Hitchin v Labourforce Solutions Pty Ltd

The case of Hitchin v Labourforce Solutions Pty Ltd involves a dispute concerning long service leave entitlements under the Long Service Leave Act 1987 (SA). The appellant, George Mettyear, a qualified electrician, worked for Rexco Pty Ltd and later for Labourforce Solutions Pty Ltd, both labour hire companies. The central issue is whether Labourforce Solutions Pty Ltd acquired part of the business of Rexco Pty Ltd, thereby making them related employers under the Long Service Leave Act. If so, Mettyear would be entitled to pro-rata long service leave for his continuous service with both companies, which amounts to seven years.

The legal issues before the court were whether Labourforce Solutions Pty Ltd acquired part of the business of Rexco Pty Ltd and if this acquisition made them related employers under section 3(3) of the Long Service Leave Act. The determination hinged on interpreting the statutory language and the factual circumstances surrounding the transition of employment from Rexco Pty Ltd to Labourforce Solutions Pty Ltd. The court examined the nature of the businesses, the continuity of employment, and the statutory provisions regarding related employers.

The court held that Labourforce Solutions Pty Ltd did acquire part of the business of Rexco Pty Ltd, making them related employers within the meaning of the Long Service Leave Act. The court found that the acquisition occurred when Labourforce Solutions Pty Ltd became the sole labour hire company for Iplex, replacing Rexco Pty Ltd. This transition constituted an acquisition of part of the business, satisfying the statutory requirement for related employers. Consequently, Mettyear’s continuous employment with both companies entitled him to pro-rata long service leave. The court ordered Labourforce Solutions Pty Ltd to pay Mettyear the sum of $10,304.84 in lieu of pro-rata long service leave. The court also indicated that it would hear the parties on the matter of interest and costs.