Business underpaid worker, who was a Turkish refugee
Two business owners have been ordered to pay nearly $250,000 in penalties, back pay, and interest after the Industrial Magistrates Court of Western Australia found that they engaged in "systematic and deliberate" wage theft.
The former operators of a kebab shop in East Perth were found to have underpaid a refugee worker over a two-year period, kept no proper employment records, and misled authorities during a regulatory investigation.
Industrial Magistrate T. Kucera imposed $132,768 in pecuniary penalties for breaches of the Industrial Relations Act 1979. But the couple's full liability reaches $249,342.66 once court-ordered back payments, interest, and costs are factored in.
"This is a case in which the respondents may be fairly described as having engaged in the systematic and deliberate underpayment of a vulnerable worker," Kucera said in the ruling.
"It is apposite to describe the circumstances… as falling under the definition of 'wage theft.'"
List of employment breaches
The court heard that the employee, a Turkish refugee on a protection visa, was hired by the employer and was made to work up to 64.5 hours and six days per week week for a flat cash rate of $20 per hour. He received no superannuation, leave entitlements, or penalty rates.
The court also found 738 separate breaches of employment record-keeping laws between 2016 and 2018, and 392 breaches of the Restaurant, Tearoom, and Catering Workers' Award.
These violations resulted in an underpayment of $102,483.74, for which the Court ordered full restitution plus $37,382.70 in interest and $6,708.22 in legal costs.
When approached by inspectors from the Department of Mines, Industry Regulation and Safety (DMIRS), the operators provided incomplete records, delayed cooperation, and used an accountant to generate inaccurate tax documents.
"The respondents… were evasive and sought to mislead DMIRS inspectors," the magistrate noted.
Handing down the penalty
In handing down the penalty, Kucera said that he is not convinced that the respondents are genuinely apologetic or remorseful for their conduct.
"I am concerned that if a penalty with deterrent effect is not imposed, even after the Court has issued orders to recover the underpayment amount and to pay pre-judgement interest, that the respondents in their capacity as directors of the company, may again decide to 'take the odds,'" he said.
"It should also be of a kind that it would likely act as a deterrent in preventing similar contraventions by like‑minded persons or organisations."
Eileen McCaffrey, Private Sector Labour Relations Acting Executive Director, said the court's decision sent a strong message that wage theft could not be tolerated.
"The human cost of wage theft cannot be underestimated, it makes us poorer as a society and undercuts law-abiding businesses," McCaffrey said in a statement.
According to the acting director, industrial inspectors are conducting unannounced inspections in high-risk industries, such as hospitality, for non-compliance with workplace rules.
"We will use the full force of the law where necessary, and businesses will have to deal with the reputational damage of having dodgy employment practices exposed," she said.
