$900,000: Operator of security firm accused of underpaying guards

Employer accused of paying security guards flat rates, even on Sundays

$900,000: Operator of security firm accused of underpaying guards

The Fair Work Ombudsman (FWO) has taken legal action against Sergey Stanislavovich Navasardyan, the former owner and operator of Griffon Alpha Group Pty Ltd, over the alleged underpayment of security guards in Perth by more than $900,000.

Navasardyan is accused of systematically underpaying 44 workers employed by his now-deregistered company between December 2019 and May 2022.

The FWO alleges that the underpayment totals $911,292, affecting both Australian and visa-holding workers, some of whom were from non-English speaking backgrounds.

The underpayments, which remain unpaid, range from $33 to $78,787 per individual, with 22 workers allegedly underpaid by over $10,000 each.

Guards paid flat rates

According to the FWO, the workers were employed on a casual basis to provide security at various venues and were paid the flat rates of $21 to $25 per hour, regardless of when they worked.

This falls short of the entitlements required under the Security Services Award 2010 and 2020, the FWO said. The underpayment included unpaid casual loadings, penalty rates for weekend and public holiday work, overtime rates, and shift allowances.

The FWO further claims that more than half of the total underpayment relates to work performed on Sundays, when workers were entitled to hourly rates of $49 to $51.

"Paying workers unlawfully low flat rates is simply unacceptable. In this case, it is alleged some workers were, for example, paid less than half their owed hourly rates on some Sundays," said Fair Work Ombudsman Anna Booth in a statement.

'Serious contraventions'

The FWO has categorised these alleged breaches as "serious contraventions" under the Fair Work Act due to their systematic and deliberate nature.

Navasardyan faces potential penalties of up to $133,200 per contravention. A directions hearing is scheduled in the Federal Circuit and Family Court in Perth on February 11, 2025.

"Employers who allegedly deliberately fail to provide their workers large parts of their lawful wages risk facing significant penalties, which have never been higher," Booth said.

"Employers should also be aware that taking action to protect vulnerable workers, like visa holders, is an enduring priority for the Fair Work Ombudsman."