A Sydney 7-Eleven store boss is set to face court after allegedly short-changing two migrant employees almost $50,000, with the claims prompting an independent review.
The Fair Work Ombudsman (FWO) has commenced legal proceedings against the Blacktown 7-Eleven's owner and his company after he allegedly underpaid the workers a total of $49,426, and created false records over two years.
Store operator Singh Sarkaria allegedly owed one employee $43,633 and another worker $5793, and the FWO has accused him of paying the workers $10 an hour.
The claims follow a joint Fairfax-Four Corners investigation, which found up to two-thirds of 7-Eleven stores could be underpaying workers.
7-Eleven Stores say it will appoint an independent panel to review the claims.
"The panel will receive, review, and process any claim of underpayment, and authorise repayment where this is appropriate," 7-Eleven Stores chief executive officer Warren Wilmot said in a statement.
"The viability of the 7-Eleven system is in no way, never has been and never will be, dependent on franchisees underpaying their staff," he said.
Mr Sarkaria's company Amritsaria Four Pty Ltd allegedly routinely stated that employees had worked only 10 hours a week when they had worked much longer.
The FWO claimed on Monday it was given false time sheets and information on wages that "gave the appearance that the employees were paid about $25 an hour".
Just last week, the FWO cautioned international students against offering to work for cash at rates below the minimum wage.
Fair Work Ombudsman Natalie James said, according to anecdotal evidence, students from non-English speaking backgrounds were indicating they would work for lower wages and longer hours.
"We hear that they are motivated to do this as long as they are paid in cash and their employment records only equate to the maximum 40 hours a fortnight allowed under their visa," Ms James said.
Mr Sarkaria faces maximum penalties of between $5100 and $10,200 per breach, while his company could be up for between $25,500 to $51,000 per breach.
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