(b) The plaintiff's work hours in the business
105 The plaintiff's evidence was that he worked long hours in the business. The defendant disputed the extent of hours claimed by the plaintiff. That was a matter of much evidence by both parties.
106 The defendant's case was that the plaintiff was paid the appropriate award wage of $300 per week as recorded in the wages book. In oral evidence (but not in his affidavit evidence), the plaintiff maintained that the entries therein were not accurate.
107 The actual outgoings of the business in respect of wages paid in the 1996 year was recorded in the defendant's 1996 income tax returns (Exhibit D) as a total of $15,600 or $300 per week.
108 The question of whether the plaintiff was paid wages in respect of work performed for the defendant's Chatswood business was a central issue in evaluating the contribution he made towards its operation and the profits generated from it. It is also a matter that raised issues that were relevant in evaluating his credibility.
109 The plaintiff did not, in his first affidavit sworn on 21 February 2006, claim that he had not received regular wages. The defendant stated in her affidavit sworn on 7 March 2006 that he was paid an award wage of $300 gross per week (paragraph 46). In his affidavit in reply sworn on 3 May 2006, the plaintiff did not directly dispute the defendant in that respect. He simply stated:-
"19. In relation to paragraph 46 of the defendant's affidavit, I say that the amount of $300.00 per week was the maximum that I could earn in my bankruptcy and I say that that amount compared to the normal earnings that I could have made to the benefit of the defendant."
110 In paragraph 53 of the defendant's affidavit sworn on 3 May 2006, she stated that the plaintiff worked in the Chatswood business until November 2002 and that "… his wages increased in accordance with the award wage, at the time of sale the gross amount was $500 and each week I paid him $341.00".
111 The plaintiff's oral evidence initially confirmed that he did not challenge the defendant's claim that he was paid wages at $300 a week and net of $253.85.
112 Mr Jamieson of counsel, who appeared on behalf of the plaintiff, in his opening submissions made reference to the fact that "she (the defendant) was only paying him $300 a week gross in the business" (transcript, p.9, lines 30 to 33).
113 However, during oral evidence, the plaintiff claimed he did not, in fact, receive wages in the amounts that the defendant had claimed (transcript 7 June 2007, at p.38, lines 27 to 30). Having given the plaintiff's evidence close consideration, his later evidence that he was not actually paid such wages must be rejected.
114 In oral evidence, for the first time, the plaintiff said that "I never received a wage because it all sort of went into a family sort of pot … to pay expenses and what not" (transcript, p.30). He said that he never had a bank account.
115 In cross-examination, it was put to the plaintiff that he received cash wages like the other employees, which he denied, adding (transcript, p.30):-
"…. As running the business, if I wanted some small amount for coffee and milk or anything like that, it would come out of the till. I never received no such thing as a pay packet or anything like that."
116 When it was put that he was paid wages subject to tax, he responded:-
"That was on the book for legal taxation requirements."
117 It was put to him (transcript p, 31):-
"Q. So, you had no cash at all to live on? A. No, I didn't. It was all in a sort of family business manner.
Q. I just want to get this very clear. You say you never received money, payment of cash, from the business? A. As far as my recollection, I don't recall having any pay packet whatsoever handed to me on a Friday.
HIS HONOUR: Q. Did you receive from time to time amounts of cash that you understood to be relative or in respect of your work? A. I - all I did was, if we went out together, the defendant and I, she paid for whatever was required, because it came out like a sink- a joint fund."
118 There is a fundamental difficulty in accepting the plaintiff's account for the first time in evidence given on 7 June 2007 that he had not in fact been paid wages. If true, it meant that the plaintiff, over a number of years, worked for no actual remuneration in the form of wages. Such an extreme hardship would be expected to have been raised and put clearly in his affidavits. However, it was not raised.
119 Later in the cross-examination, referring to paragraph 19 of his affidavit in reply sworn on 3 May 2006 on the question of wages, it was put to the plaintiff:-
"Q. … you don't assert there that you did not receive any wages, or do you? A. No, your Honour. That's correct.
Q. … you don't there challenge or take issue with or dispute the defendant's assertion that you were paid wages at $300 per week and not of cash of $253.85 per week? A. No, I don't your Honour, can I say something?
Q. Yes. A. This was because I went bankrupt, see. It had to be shown I was earning some money so therefore it was put down on paper that I was earning the very minimal amount for the purpose of the taxation department."
120 He, a little later said "I said I didn't get the money".
121 He conceded that the first time he raised the non-payment of wages was during evidence on 7 June 2007.
122 In opening submissions for the plaintiff, Mr Jamieson stated that the plaintiff's earnings were "going into the pool" by which he meant pooling together the family income. Apart from the payment of $600 per week for three months, the plaintiff did not give any particulars as to when, how or in what amount any earnings he received were "pooled" for the benefit of the defendant and/or the defendant's children. In those circumstances, it is simply not possible as Mr Jamieson in opening submitted, (at transcript p.11, lines 21 to 27) that I simply evaluate the plaintiff's "contribution" at $300 per week.
123 The plaintiff's evidence of not having been paid in accordance with entries in the wages book contradicted earlier statements he made in evidence admitting that he had received wages on that basis. The plaintiff's contradictory evidence on this fairly central matter, of course, reflects adversely on his credibility. That, however, does not mean that he was fully or properly remunerated for the hours worked, a matter to which I shall return below. The remuneration issue must, in my opinion, be approached upon the basis that the plaintiff was paid in accordance with the wage book entries signed by him. The issue then is whether those wages did or did not properly reflect the actual hours worked.
124 The plaintiff submitted that it was unexplained by the defendant as to why the plaintiff's son, Benjamin Howell, was paid the same amount of wages according to the wage books as the plaintiff, despite there being a difference in age and experience between the two employees.
125 The plaintiff described in his affidavit of 21 February 2006 (paragraph 23) the duties he performed in the laundry, including the operation of the dry cleaning equipment, carrying out of repairs and maintenance on equipment used in the business. It was observed that his carrying out of these duties was not challenged by the defendant's evidence and that he was not cross-examined regarding his carrying out of these duties.
126 An analysis of the three wages books (Exhibits 10, 11 and 12) reveal the following:-