A Rockhampton-based business Alertvale Pty Ltd has been penalised $31,590 for underpayment of termination entitlements of two Filipino employees.
In February 2016, Alertvale terminated the workers' employment effective immediately and failed to pay their employees owed payment in lieu of notice of termination including their four week's redundancy entitlements. The company also unlawfully deducted $1,915 from the workers' wages for training.
The Filipino workers employed as welders were sponsored by Alertvale on 457 skilled migrant visas for more than a year. The company back-paid the workers 16 months after the contraventions occurred, after being contacted by the Fair Work inspectors.
Fair Work Ombudsman Sarah Parker said the penalty should serve as a warning to all employers to pay employees the redundancy entitlements they are owed.
“If companies don’t pay termination entitlements it can have a significant impact on employees, depriving them of a crucial safety net until they obtain a new job,” Ms Parker said.
The agency stresses that they treat matters very seriously particularly when employers fail to provide basic lawful entitlements to vulnerable migrant workers.
"Every single worker in Australia has the same workplace rights, regardless of their visa status, ethnicity or linguistic background.”
Judge Robert Harper criticised Alertvale for failing to provide correct entitlements to its employees, saying the failure was “both reckless and negligent”.
Judge Harper noted that the company had increased in size from about 180 employees in August 2016 to more than 350 employees in March this year, but still did not have a dedicated human resources department.
“[Alertvale] operates in the mining and heavy industry sectors which are known for experiencing downturns which lead to redundancies and terminations like those experienced by the Employees,” Judge Harper said.
In issuing the penalty, Judge Harper said general deterrence was “of fundamental importance to deter those employers who may be tempted to exploit the specific vulnerabilities of employees reliant on their employers for the ability to remain in Australia.”
The company provided evidence to the Court that it had now required its directors to undertake training in relation to their employer obligations, and would require employees to complete training about workplace laws.
Have you been terminated or made redundant? Know your rights and entitlement
For a quick overview of ending employment, watch the short video below to understand how employment ends, when notice needs to be given and how much.
For more information on termination, including unfair dismissal and unlawful termination:
To work out how much notice you are entitled to:
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