Microsoft passes responsibility of Sydney's D365 Group to distributor Dicker Data

Microsoft has commenced an investigation into one of its Sydney-based Gold partners D365 Group following a CRN investigation, but has also attempted to push responsibility to the company’s distributor Dicker Data.

In correspondence sighted by CRN, a Microsoft channel sales lead told a former D365 Group employee that Dicker Data “handles” its relationship with D365 Group, saying that the reseller was not a direct Microsoft partner.

The vendor has a small number of large partners with which it deals directly in Australia.

The Microsoft employee said the company had commenced an internal business conduct request and disengaged as a channel sales team with D365 Group while the investigation is ongoing.

The representative said the matter had also been referred to Microsoft Australia's "local partner leader" and the vendor’s local legal and procurement teams.

A Microsoft Australia spokesperson did not confirm or deny that the investigation was ongoing and only said that they “have nothing more to share at this stage”.

Last month, the Fair Work Ombudsman found that D365 Group underpaid several of its staff up to several thousand dollars each in Superannuation, annual leave and other entitlements.

The agency said D365 Group contravened s90(2) of the Fair Work Act and clause 4.3 of the National Minimum Wage Order. The Australian Taxation Office has also found that at least three employees were owed several thousand dollars worth of Superannuation payments.

Several former employees are claiming up to $20,000 in unpaid entitlements from D365 Group.

CRN also found that in 2019, at least two former D365 Group employees were awarded several thousand dollars by small claims courts in NSW and Western Australia.

When CRN took the matter to Microsoft in mid-February, the vendor did not comment on the allegations but instead sent a copy of its Partner Code of Conduct.

The Code of Conduct reads, "Microsoft partners and their employees, agents, and subcontractors (collectively referred to as “Partners”), in collaboration with Microsoft, serve our customers. It is important for Microsoft that Partners embrace and continually improve on Microsoft’s values."

"While conducting business with Microsoft and Microsoft’s employees, agents, subcontractors, and customers, Microsoft expects its Partners to commit to operating in full compliance with all applicable laws and regulations, and to adhere to the principles outlined in this Partner Code of Conduct."

Dicker Data founder and chairman David Dicker told CRN in a statement, “We respect the law and the due process of the law. If the company in question is convicted of non-compliance with the recent Fair Work orders, then their trading account with Dicker Data will be terminated.”

Dicker Data has confirmed to CRN that it has communicated its position on the matter to the D365 Group.

Dicker Data has its own Code of Conduct, although it does not extend to its partners.