An employer has been fined over $100,000 for not back paying two workers who were underpaid just under $13,000.
Bishnu Laxmi Ganesha Trading Pty Ltd, which formerly operated the ‘Brisbane City Thai Massage and Day Spa’ and ‘Heavenly Asian Massage’ parlours, has been penalised $97,000 in the Federal Circuit Court.
In addition, the former company owners Sean Pinnell and Sajana Paudel have been penalised $4625 and $10,600 respectively, while Bishnu Laxmi Ganesha Trading business manager Binaya Sapkota has been penalised $8000 for his involvement in contraventions of record-keeping and pay slip laws and in the failure to provide the employees with a Fair Work Information Statement at the commencement of their employment.
The total $120,225 in penalties are the result of legal action by the Fair Work Ombudsman.
Two former employees of the massage parlour who were from Japan working in Australia on a 417 working holiday visa sought the Fair Work Ombudsman’s assistance which found that they had been underpaid over a three-month period in 2016.
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The employees had been paid on a per-massage basis for most of their employment but were entitled to the minimum hourly rates and entitlements under the Hair and Beauty Industry Award.
An inspector issued a Compliance Notice requiring Bishnu Laxmi Ganesha Trading to back-pay the workers, but the company, Pinnell and Paudel failed to comply with the Notice.
Pinnell wrote an email saying he would “be seeking some legal advice about these ‘ridiculous charges’,” before later claiming he had no money to pay the Compliance Notice.
The matter was taken to court where the judge imposed the penalties after Pinnell, Paudel and their company admitted contravening workplace laws by failing to comply with a Compliance Notice issued by the Fair Work Ombudsman.
Judge Salvatore Vasta also ordered the company to back-pay the employees in full.
They have been back-paid less than half their entitlements to date.
“Any employer that thinks they can exploit vulnerable employees with impunity should think again”
Fair Work Ombudsman Natalie James says the penalties imposed send a message that there will be serious ramifications for employers that 'thumb their nose' at the law by refusing to back-pay workers who have been short-changed.
“This employer’s refusal to comply with the Compliance Notice and resolve this matter outside of the courts was clearly a very poor decision,” Ms James said.
“Any employer that thinks they can exploit vulnerable employees with impunity should think again.
Employers and employees seeking assistance can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94. An interpreter service is available on 13 14 50.
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