A Gold Coast businessman who underpaid security guards thousands of dollars has been hit with a record $308,000 penalty in the Federal Circuit Court.
The Fair Work Ombudsman commenced court action in February against Step Ahead Security Services after eight guards were underpaid more than $22,000 between May and August in 2014.
The guards were not given their minimum hourly rates, casual loadings, shift allowances, minimum shift pay and penalty rates for night, weekend and overtime work.
The Ombudsman sought an order for owner Owen Ivor Jennings to be held personally liable because the company had been wound up, therefore a back-pay order against it would be invalid.
As part of his own $51,300 penalty, Mr Jennings was ordered to personally pay back the eight guards, while his business was fined a further $257,000.
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Federal Circuit Court Judge Michael Jarrett on Friday noted Mr Jennings had also been the sole director of two other security companies that were wound up.
He called Mr Jennings' conduct "calculated and deliberate" and said it amounted to "a blatant disregard for Australia's workplace laws and the rights and entitlements of ... employees".
Acting Fair Work Ombudsman Mark Scully said the watchdog was committed to building a culture of compliance with workplace laws in Australia.
"Unfortunately, there are some rogue business operators who think they can short-change their staff and get away with it by liquidating their companies and hiding behind a corporate veil," he said.
"They should think again, as we will seek to hold them to account at every available opportunity."
The matter was also referred to the Australian Securities and Investments Commission.
Mr Jennings now operates another security company, Tweed Coast Security, from the same offices of Step Ahead.
Tweed Coast Security was contacted for comment.
