Former worker sues CBA-backed startup over 60-hour work week

Unloan, the digital mortgage startup owned by Commonwealth Bank (CBA), is facing accusations of unfair workplace practices from former staffer Luke Marraffa-Ives, who has taken the matter to the federal court.

The news: CBA is sued by former employee of Unloan, which is owned by x15ventures

According to Marraffa-Ives, he was made to work up to 60 hours a week across multiple roles while working at Unloan. He has also alleged he was made redundant after making a complaint with HR.

Once part of the ranks at banking giants Westpac and National Australia Bank, Marraffa-Oves was employed at Unloan between May 2022 and March 2023. The startup is owned by the CBA’s VC arm, x15ventures.

According to the Australian Financial Review (AFR), Marraffa-Ives’ contract specified a 38-hour work week. However, he alleges being made to work every day of the week, which would sometimes come to 60 hours.

Marraffa-Ives claims his initial hiring was for a ‘platform and performance manager’ role. However, he was also assigned the duties of a ‘customer success manager’ role that was yet to be filled. Meanwhile, his contract labelled him as a ‘lending manager’, another role altogether.

“From the time that the applicant commenced his employment, he faced significant difficulty in understanding the scope of his role and its associated duties,” the court application reads.

Such ambiguity apparently led Marraffa-Ives to struggle with understanding the full extent of his responsibilities, which included managing technical issues in Unloan’s system, thereby sidelining him from performing his primary duties.

The former employee has pointed fingers at CBA, stating the bank violated Fair Work standards by retaliating against him when he expressed concern about the increasing responsibilities back in November.

According to Marraffa-Ives, he met with a x15Ventures HR representative in November regarding the unclear nature of his role and the associated frustrations.

He went on to claim that he was rejected for a promotion back in October despite working across two roles.

Marraffa-Ives has also alleged that CBA breached its enterprise bargaining agreement by failing to consult with him before he was made redundant in March with only three days’ notice.

Unloan launched in May 2022, offering 10-minute online home loan refinancing applications with competitive interest rates, with a view to expanding into new loans in the future.

“We are aware of Mr Marraffa-Ives’ case and will be defending his allegations, which we dispute. However, given the lodgement of this matter in the Federal Court, it is not appropriate for us to comment further at this stage,” an Unloan spokesperson said in an email to SmartCompany.

A directions hearing for the case will be heard on September 26.

Our take:

Overtime and multiple roles are something that is incredibly common in the startup ecosystem, particularly for early-stage startups such as Unloan. Hustle culture is real. Celebrated. Romanticised.

However, there is always the question of what’s reasonable, particularly for workers who aren’t founders. What expectations should be put on them when it’s not their baby or they don’t have equity or a financial stake in the future success of the business?

In a time where work-life balance and wellbeing in the workplace have become a prevalent conversation, one has to ask, should startups still be getting a ‘pass’ when it comes to working hustle hours?

If you’re a founder, VC, or startup worker we’d love to hear your opinion on this for a follow-up article. Comment below or feel free to email tjones@smartcompany.com.au, especially if you’d prefer to stay anonymous.