A Melbourne-based cleaning company has been fined $144,000 for underpaying three casual workers following legal action by the Fair Work ombudsman.
The three casual workers were hired to perform cleaning duties at various hotels at which Davdot Facilities Services held cleaning contracts. Davdot admitted to underpaying their cleaners a total of $10,428 between October 2015 and August 2016.
The Court found the company and the cleaning operator underpaid the employees, did not make and keep employee records, did not provide payslips to the workers, and failed to comply with a notice to produce records or documents.
The substantatial penalties must serve as a warning for employers who fail to act on advice about workplace laws, says Fair Work Ombudsman Sandra Parker.
“All employers have a clear obligation under Australia’s workplace laws to pay correct wages and entitlements and rectify areas of concern the Fair Work Ombudsman raises with them. If companies do not improve compliance with workplace laws, we are clearly prepared to take court action that can lead to heavy financial penalties,” Ms Parker said.
The Fair Work Ombudsman sees that overseas workers are particurlary vulnerable to exploitation, unaware of their workplace rights, face language barriers or are reluctant to complain, which make it difficult for them to seek help.
Ms Parker encourages workers to contact the Fair Work Ombudsman if they are facing issues at work or if they have concerns about their wages or entitlements.
Judge Grant Riethmuller noted the respondents had “a history of non-compliance”, having been involved in two small claims proceedings in the Federal Circuit Court where declarations and orders were made against them.
Judge Riethmuller said the underpayments were “very significant to two of the employees (given their income levels)”. The underpayments were rectified by Davdot after the legal proceedings began.
In addition to the penalties, Judge Riethmuller made orders for Mr Hinchcliffe and his company to pay interest on the workers’ back-payments, sign-up to the My Account portal, complete online courses for employers, commission an external audit of its pay practices and rectify any underpayments discovered.
Have you been underpaid?
If you think you have been underpaid, it needs to be fixed as soon as possible.
Visit the Fair Work Ombudsman website for a step-by-step guide on how to fix an underpayment or call the Fair Work Infoline on 13 13 94.
An interpreter service is available on 13 14 50. If you are eligible to make a claim, the FWO will provide free assistance with this process.
The Fair Work Ombudsman's Pay and Conditions Tool (PACT) is also available, which provides advice about pay, shift, leave and redundancy entitlements.
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