HI6027 Business And Corporate Law - Final Assessment

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Question 3 (11 marks)

Boris signed a contract to work for Foodies Pty Ltd as an auditor. According to the terms of the contract, his compensation was $750 per week with a subsidy of $200 per week for legitimate business expenses. Boris and the company both knew that the amount specified for Boris’ expenses would only be less than $75 per week, but a higher amount was stated to lower the amount of income tax that he will need to pay. Four months after, Boris’ employment was terminated. He initiated action against the company for four weeks’ unpaid wages but not his unpaid subsidy (also four weeks’ worth). Explain, with proper legal reasoning, whether the company is liable to pay the claim?

(Maximum 250 words)

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