Action under Protecting Vulnerable Workers laws
The Fair Work Ombudsman (the Ombudsman) has commenced action under the ‘serious convention’ provisions of the Protecting Vulnerable Workers laws, against Winit (AU) Trade Pty Ltd (Winit), A Hong Kong-owned company that provides warehousing and distribution in Sydney.
The Ombudsman has alleged that Winit have underpaid 30 migrant employees in Sydney, which is a total of $368,684 under the Services and Wholesale Award 2010 between July 2017 and June 2018.
All 30 employees were working whilst holding a holiday visa, performing various duties including sorting, loading and packing goods at a warehouse in Western Sydney.
The alleged underpayments range from $446.00 to $28,202, with 19 of the employees being allegedly underpaid more than $10,000.
Allegedly it is evident that four of the underpayment breaches meet the ‘serious contraventions’ under the Protecting Vulnerable Workers amendments to the Fair Work Act 2009 (Cth) (the Act), as there is evidence to indicate that the breaches were deliberate and systematic.
Sandra Parker from the Ombudsman has said that:
“Employers are on notice that the Fair Work Ombudsman will enforce the Protecting Vulnerable Workers laws to ensure that any individuals or companies who allegedly commit serious contraventions are held to account,”
“All workers in Australia have the same rights, regardless of nationality and visa status. Anyone with concerns about their pay or entitlements should contact us for free assistance.”
The employees allegedly worked up to 60 to 70 hours per week across six or seven days, however were only paid at a base rate of pay of $24.41, with no penalties or overtime entitlements.
It was also uncovered that Winit had failed to comply with legislation concerning pay slips, issuing new employees with a Fair Work Information Statement, and various award requirements, including shift allowances, meal allowances and the frequency of pay.
The Ombudsman also asserts that Winit breached adverse actions laws by reducing a minimum of two employees’ shifts after they declined Winit’s settlement offer, made just after the Ombudsman began its investigation, to pay only 25 per cent of their outstanding entitlements.
Thankfully, all employees have now been completely back-paid.
Winit still faces penalties of up to $63,000 per breach for other breaches that have been alleged, in addition to the penalties they have previously faced for the ‘serious contraventions’ that were alleged.
We encourage you to contact our Workplace Relations Team on (07) 3872 2222 or at workplacerelations@amaq.com.au, if you have any further questions or queries about award and workplace law compliance.