The Fairwork Ombudsman has commenced legal action against Indian origin couple Saandeep Chokhani and wife who own and run the Coffee Club franchise at the Nundah Village Shopping Centre in Brisbane.
According to the Fair Work Ombudsman, the couple allegedly underpaid their worker, an Indian national in his late 20s. He was sponsored to work as a cook at the Coffee Club outlet on a 457 skilled worker visa by Gaura Nitai Pty Ltd, a company in which the Indian couple are the directors.
It is alleged that the worker was promised an annual salary of $53,900 at the time of his recruitment. However, they failed to pay him for a four-month period from July-to-November 2014 and a one-month period in February-March 2015. He was then paid $19,334 by electronic transfer on 22 April 2015.
After paying the worker, the couple allegedly demanded a cash back pay of $18,000 threatening to cancel his 457 visa if he refused to pay.
The worker then withdrew $18,000 in cash and repaid it to Mr Chokhani on the same day.
Further to this, the worker was terminated without notice in November 2015 after which he lodged a request for assistance with the Fair Work Ombudsman.
It is alleged that when Fair Work inspectors investigated they found that, because of the unlawful cashback payment, the worker had been underpaid his minimum hourly rates, casual loading, annual leave entitlements, overtime rates, payment in lieu of notice of termination and penalty rates for weekend and public holiday work.
The worker has now been back-paid in full. However, Mr Chokhani faces maximum penalties of up to $10,800 per contravention. In addition to this, their company Gaura Nitai Pty Ltd faces penalties of up to $54,000 per contravention,
says Fair Work Ombudsman.
A penalty hearing is scheduled for the Federal Circuit Court in Brisbane on 2 June.
