During a proactive audit activity by Fair Work inspectors, it was found the employees at the Degani Bakery Café Pty Ltd in Greensborough in Melbourne were underpaid their minimum hourly rates, penalty rates and their entitlements.
Mr Sajid Amin, who runs and part-owns the Degani outlet under the SHMAP Group admitted in the Federal Circuit Court that they underpaid 15 employees at their outlet of $12,506.
The employees included four teenagers - one aged just 15 - and four adult migrant workers from China and Malaysia who were paid flat rates as low as $12 an hour during the nine-week period in 2016.
Mr Amin has been penalised $23,562 and the company Mr Amin is a director of, SHMAP Group Pty Ltd, has been penalised a further $117,810.
The Court found Mr Amin and SHMAP Group also breached workplace laws by failing to issue pay slips and providing Fair Work inspectors with false records during the investigation.
Fair Work Ombudsman Sandra Parker said the penalty imposed by the Court highlights that underpayment of vulnerable workers will not be tolerated.
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“We took this company to court because the conduct involved two of the most vulnerable groups in our workforce - young workers and workers from non-English speaking backgrounds.
“These groups are at risk as they may not seek help because of language and cultural barriers, concerns about visa status, or they may be unaware of their workplace rights,” Ms Parker said.
“The conduct, in this case, was further aggravated with the employer hampering our investigation by providing inspectors with falsified records. We will take enforcement action against any business that deliberately contravenes Australia’s workplace laws,” Ms Parker said.
Judge Philip Burchardt found that it was clear the breaches were deliberate and said Mr Amin “has roundly sought to blame everyone but himself” for the breaches.
Source: Public Domain
Judge Burchardt found that the underpaid workers were vulnerable.
“The evidence shows that the employees were not in a position to bargain meaningfully with Mr Amin and a number of the employees were either young and/or students and/or on restrictive visas,” Judge Burchardt said.
In addition to the penalties, the Court ordered Mr Amin to undertake training and education using the FWO’s Online Learning Centre.
How to seek help?
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. A free interpreter service is available on 13 14 50.
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