Court slaps employer with 6-figure penalty after falsifying wage records

FWC cites restaurant's 'reprehensible conduct'

Court slaps employer with 6-figure penalty after falsifying wage records

The Federal Circuit and Family Court has imposed a six-figure penalty against an employer who reportedly committed breaches against record-keeping and pay slip laws.

Court records also showed that the employer threatened workers to prevent the misconduct from being exposed.

The crackdown has come after the Fair Work Ombudsman strongly emphasised that workplace violations do not go unpunished, as it promised to secure wins for underpaid workers.

Background of the case

The case was filed against former operators of a café in the Perth CBD. Quickpoint Pty Ltd operated Shimizu Harbour Town, a Japanese café trading, with its director Augustine Lawrence Chia.

After an internal investigation, the Fair Work Ombudsman (FWO) filed charges to the court when it discovered anomalies after the employer submitted documents.

After receiving a worker’s assistance request, the FWO investigated and sent Quickpoint with a Notice to Produce documents.

Quickpoint then submitted Fair Work inspectors with fabricated records to show that it had paid two employees at the Shimizu Harbour Town café much higher rates than was the case on two different occasions.

The court also found the employer’s “blatant attempt to coerce or threaten their staff with losing their employment” if they would not assist their “concerted attempt to mislead” the FWO.

Through its director, the employer pressured the two employees to inform inspectors they were paid award rates, despite only paying them $15 to $16 per hour. The misconduct also included Chia’s letter stating: “Anything you say about me or the company about not paying according to award wage can lead to a heavy fine and closing of this business” and “this is a very serious… if you say the wrong thing we all will be out of a job”.

The court described the act as “reprehensible.” “Making and keeping false records is not a straightforward task” as it requires “a fair degree of deception,” the court added.

“When the payslips were produced to the employees, they contained false and misleading information which made it more difficult for them to discover how their rights had been treated in such a cavalier fashion,” the court said in its decision.

“The need for general deterrence in this matter is high. Employers must be deterred from engaging in similar conduct,” it added. Quickpoint and Chia admitted the violations.

According to Fair Work Ombudsman Sandra Parker, employers that use false records  to frustrate an investigation into complaints of underpayment will face “serious consequences.”

“Falsifying records and providing them to the Fair Work Ombudsman is extremely serious conduct, and it will be met with the strongest possible enforcement action,” Parker said, adding that inspectors will test whether time and wages records are legitimate. “If you use false records, you will be found out,” she said.

The FWO also reminded employers that compliance in the fast food, restaurant and café sector “continues to be [its] priority.”

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