Two Melbourne businesses are the latest facing legal action by the Fair Work Ombudsman for alleged exploitation of overseas workers. They join a growing list of businesses accused by the workplace regulator of failing to comply with laws protecting workers’ basic pay and other entitlements.
The Fair Work Ombudsman has commenced legal action in the Federal Circuit Court against the operators of Choi Brothers which trades as Bread Kingdom on Lonsdale Street, Melbourne, and Photoplus Australia which operates the Photo Plus photography and phone retail outlet in Swanston Street Melbourne. It is alleged three overseas workers were paid as little as $11 an hour, resulting in almost $46,000 in underpayments.
Jim Parke from the national industrial relations consultancy, Australian Workplace Strategies, says business owners must be fully aware of and understand employees’ minimum entitlements.
“Claims of underpayment are becoming more prominent in the hospitality, retail and road transport industries and often times it is the complex minimum entitlement structures that confound employers.
“With the lead up to Christmas and the busiest retail period of the year, business owners need to understand now before the rush starts, the payment rates for public holidays, including holiday penalties, entitlements regarding substitute days and overtime,” Mr Parke said.
Employers are advised to ensure they fully understand their obligations under modern awards, enterprise agreements and individual employment contracts which may contain provisions for special pay and holiday arrangements in the Christmas period.
“Compulsory leave and workplace shut-down periods over the Christmas period are still common in some industries and can cause considerable controversy, with the interests of the employer and employees often coming into conflict.
“We recommend that business owners and managers, professional payroll and human resources staff engage in good communication with staff and run a health check on their industrial relations policies to ensure your employee payment obligations are met correctly,” Mr Parke said.
Resources such as the Fair Work Ombudsman, Fair Work Commission and industrial relations firms such as Australian Workplace Strategies can provide additional resources, which are especially helpful to small to medium businesses which do not have full time, internal human resource professionals, or international employers with Australian subsidiaries. Obtaining the right advice early can prevent or resolve significant and costly claims brought by discontented employees and ensure regulatory compliance.