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Accounting

Lucy is in her final year of her accounting degree and is looking for a job. She sees advertised in the newspaper a position with a small accounting practice in Melbourne which reads:

“Wanted: A qualified early career accountant. Please telephone David 9600 5222 to       discuss the beginning of your career”.

Lucy telephones David to discuss the advertisement. David tells Lucy that the job is for an accountant graduate and advises that the job is fulltime and pays $500 a week. David also tells Lucy she always needs to arrive at the office by 8.30am. After a short discussion about their respective hobbies and interests Lucy and David agree Lucy will commence working for David the following week. Lucy does not tell David she has not yet graduated from her accounting degree.

Lucy is very capable and after four weeks of working for David, David asks her to also do some additional work on the weekends. He promises Lucy he will give her an extra $100 a week if she works on weekends. He also promises Lucy he will pay her an extra $400 for the first four weeks of work she has completed as a ‘bonus’.

Lucy works the next five weekends in a row. After working late on a Sunday night, Lucy arrives to work on Monday at 1pm.  David is very angry and yells at Lucy for being late. Lucy becomes upset and asks David for the extra money he has ‘promised’ her for both working weekends and for the ‘bonus’. David replies forcefully “I owe you nothing. You are too late for work and I have known for a while that you lied about being an accountant. You are fired”.

REQUIRED:

a)         Critically evaluate, using case law only, the different legal grounds (if any) David            may argue which entitle him to fire Lucy (or in other words terminate the contract         (if any) with her.

(nb. Please disregard any legislation that may apply to workplace relations).

 

(30 marks)

b)         Advise Lucy whether she is legally entitled to the extra money David has ‘promised’       her for working weekends as well as for the ‘bonus’ of $400. Critically evaluate using     relevant legal principles.

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