Ombudsman Sandra Parker said the penalty should serve as a warning to businesses to comply with their legal obligation to workers
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A Bundaberg-based transport company has been fined $80,000 for underpaying an employee more than $11,000 over just nine months.
Bundaberg Refrigerated Transport has received the penalty in the Federal Circuit Court. The company transports refrigerated farm produce to destinations across Australia, including Brisbane, Sydney, Melbourne and Adelaide.
The company paid the employee a flat hourly rate of $23 Between October 2014 and July 2015 . This was despite her being entitled to ordinary hourly rates of up to $26.09 as a casual employee, up to $41.74 for overtime and weekend work, and up to $52.18 on public holidays under its enterprise agreement.
The company also underpaid the worker’s annual leave entitlements, failed to provide the employee with the terms of her employment in writing, and failed to provide a Fair Work Information Statement when she commenced work.
Fair Work Inspectors investigated after the employee lodged a request for assistance. The agency had previously informed Bundaberg Refrigerated Transport about its obligations when investigating requests from other workers.
Ombudsman Sandra Parker said the Court’s penalty should serve as a warning to businesses to comply with their legal obligation to workers.
“Employers have a responsibility to fully pay the minimum rates and entitlements that apply to their employees,” said Parker.
“We are prepared to take legal action to enforce workplace laws, especially if businesses have been put on notice. Any workers with concerns should contact the Fair Work Ombudsman.”
Moreover, Judge Salvatore Vasta said Bundaberg Refrigerated Transport breaching its own enterprise agreement “must be seen in a very serious light”.
“I am still of the view that there is no excuse for a failure to comply with one's own document, and in that respect, the breaches were deliberate,” said Judge Vasta.
Judge Vasta also noted that: “There has still been no apology for, to use the vernacular, ripping off an employee over that nine month period”.
Judge Vasta found that there was a need to impose a penalty for the purpose of deterrence.
“Deterrence will only occur if the penalty is such that it not only tells this Respondent that such conduct is totally against what our society stands for, but allows others who are in the same position as the Respondent company to think twice before failing to honour their obligations under the FW Act.”
Bundaberg Refrigerated Transport has back-paid the employee in full.
Apart from the penalty, Judge Vasta ordered Bundaberg Refrigerated Transport to make hard copies of its enterprise agreement available at its premises, and to display workplace notices containing information about employee entitlements and FWO contact details.
