The Fair Work Ombudsman (FWO) is taking legal action against the operators of two United Petroleum outlets in Tasmania’s south after they allegedly underpaid migrant workers a total of more than $20,000.
The FWO alleges that four migrant workers from India and Bangladesh, who were in Australia on visas, were underpaid and false pay slips were used at United Petroleum outlets at Sandy Bay in Hobart and Kingston.
One was a junior, aged 19-20 at the time.
It is alleged the workers were paid unlawfully low flat rates ranging from $16 and $23 per hour for a fixed number of hours per week and not paid anything for extra hours worked, resulting in a total of $20,230 in underpayments between December 2020 and February 2021.
KLM Foods Pty Ltd, which operated the Sandy Bay and Kingston outlets and Vizaan Pty Ltd, which employed a worker at the Kingston outlet, will both face the Federal Circuit and Family Court in relation to the allegations.
Mr Loveleen Gupta, who is a respondent in both proceedings and allegedly involved in the operations of the Sandy Bay and Kingston outlets as the sole director of KLM Foods and is the husband of Vizaan’s sole director, will also appear in court.
“The alleged underpayments for three of the workers were rectified after the FWO began investigating – however, it is alleged that KLM Foods and Mr Gupta also breached the Fair Work Act by requiring one of the workers to make an unlawful cash back payment of $6,353 to KLM Foods in June 2023,” the FWO say.
“The FWO also alleges KLM Foods and Vizaan knowingly provided workers with false pay slips and that KLM Foods also knowingly provided FWO with false timesheets.”
Fair Work Ombudsman Anna Booth said allegations of underpayments of visa holders are treated particularly seriously.
“Employers need to be aware that taking action to protect potentially vulnerable workers, including visa holders and young workers, is among our top priorities,” Booth said.
“The alleged providing of false records is serious and unacceptable conduct. Employers should be aware our experienced inspectors will test whether time and wages records are legitimate. If you use false records you will be found out.”
The Tasmanian workers were allegedly variously underpaid minimum wages, overtime rates and penalty rates for weekend, public holiday and afternoon-shift work, under the Vehicle Repair, Services and Retail Award 2020.
It is alleged that KLM Foods underpaid three workers a total of $15,116 and Vizaan underpaid one worker $5,114, with Mr Gupta allegedly implicated in all underpayments.
Laws related to record-keeping and having written agreements for part-time staff were allegedly also breached.
