The Fair Work Ombudsman has secured a total of $450,000 in penalties in court against the operators of a retail gift shop on Phillip Island, in Victoria, who displayed a “deliberate disregard” for workplace laws in underpaying three workers a total of $40,000.
Phillip Island Souvenirs Pty Ltd, which operates ‘U-Neek Souvenirs & Motorsport’ selling motorsport and general merchandise and souvenirs in the town of Cowes, has been penalised $375,000.
In addition, the company’s sole director and owner Bruce Wisbey has been penalised $75,000.
The Federal Circuit and Family Court imposed the penalties in response to Phillip Island Souvenirs Pty Ltd underpaying three workers a total of $40,000 and breaching laws relating to pay slips and employment records. Mr Wisbey was involved in all contraventions.
The company employed the three workers, including a Slovenian visa holder, to work at the gift shop as retail assistants for various periods between October 2018 and December 2020.
In addition to the penalties, the Court has ordered the company to rectify the underpayments in full, plus interest and superannuation.
Acting Fair Work Ombudsman Mark Scully said it was completely unacceptable that the underpayments occurred despite Fair Work Inspectors having put the company and Mr Wisbey on notice after investigating previous underpayment complaints.
“We will continue to take enforcement action against employers who disregard the rights of their employees, and the result can be significant back-payment orders as well as significant penalties,” Mr Scully said.
“These significant penalties put employers on notice that continually paying unlawfully low flat rates is serious conduct that won’t be tolerated.
“Employers also need to be aware that taking action to protect visa holder workers is among our top priorities.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
The Fair Work Ombudsman investigated the matter after receiving requests for assistance from the underpaid workers.
The investigation found the workers were paid unlawfully low, flat hourly rates of $20 on weekdays and $25 to $27 on weekends, breaching award rates and national employment standards around minimum wages, overtime, leave entitlements and penalty rates.
They were entitled to hourly rates of up to $26.76 on weekdays, up to $37.47 on Sundays and up to $53.53 on public holidays.
The visa holder was underpaid $7,298 and the other workers were underpaid $22,583 and $10,128.
Phillip Island Souvenirs Pty Ltd also breached workplace laws by failing to issue the workers with compliant pay slips and failing, upon the workers’ requests, to provide them with copies of their employment records or make the records available for their inspection.
Judge Amanda Mansini found that the company and Mr Wisbey had displayed a “deliberate disregard” for its employees and workplace laws and there was no evidence of cooperation or contrition.
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. Employees can also seek information from their employer and their union, if they are a union member.
The FWO has an online anonymous report tool, including options to report in languages other than English, and information for migrant workers, including on protections for their visas, is available at their visa holders and migrants webpage.
Employers can seek information from their employer association if they are a member, and also use the FWO’s pay calculator and Small Business Showcase.
