Unfair Contract Terms Fairly Dealt With

Unfair Contract Terms Fairly Dealt With

Continuing our commitment to advising and guiding those involved in the franchise industry, MST Lawyers has prepared articles about the introduction of unfair contract terms law for small business. This piece reports on the latest case judgment. Australian Competition and Consumer Commission (ACCC) v Servcorp Limited [2018] FCA 1044 (Servcorp) showcases that the enforcement and compliance of these new laws is a priority for the ACCC and further develops our understanding of what the courts are classifying as unfair contract terms.

‘Just and Equitable’ Winding Up Of Solvent Companies

As of May 2018, there were approximately 2,598,541 registered companies in Australia. The majority of these businesses fall into the category of a small business. Accounting for 33% of GDP, small corporate entities are vital to the national economy. However, due to their small scale, it is often the case that these small entities only have one or two shareholders, which can create difficulties when conflict arises between shareholders who have an equal stake in a company.

Mo’ Money, Mo’ Disclosure

When selling a business in Victoria for less than $450,000, a disclosure statement must be provided to the purchaser. In May 2018, the Victorian Parliament increased the threshold purchase price of a business from $350,000 to $450,000, below which a disclosure statement must be provided by the vendor. Commonly known as a “section 52 statement”, the disclosure statement contains a summary of the recent trading and financial performance of the business to be sold.

Employment Law Update — Minimum Wage Increase

The Fair Work Commission minimum wage panel decision of 1 June 2018 announced a 3.5% increase to the Federal Minimum Wage Rate.

The decision lifts the federal weekly minimum wage from $18.29 per hour ($694.90 per week) to $18.93 per hour ($719.20 per week). 

The increase in minimum wages will take effect from the first full pay period commencing on or after Sunday, 1 July 2018.