The Fair Work Ombudsman has commenced legal action against the operators of a retail gift shop on Phillip Island, in Victoria, for allegedly underpaying three workers a total of more than $40,000.
Facing court are Phillip Island Souvenirs Pty Ltd, which operates 'U-Neek Souvenirs & Motorsport', selling motorsport and general merchandise and souvenirs in the town of Cowes. The litigation also alleges breaches by the company's sole director and owner Bruce Wisbey.
The Fair Work Ombudsman investigated after receiving requests for assistance from three workers, including a Slovenian visa holder, the company employed to work at the gift shop as retail assistants for various periods between October 2018 and December 2020.
It is alleged the investigation found that the workers were paid unlawfully low, flat hourly rates of $20 on weekdays and $25 to $27 on weekends.
The workers were allegedly entitled to hourly rates of up to $26.76 on weekdays, up to $37.42 on Sundays and up to $48.17 on public holidays.
The alleged breaches related to entitlements owed under the General Retail Industry Awards 2010 and 2020 and the Fair Work Act's National Employment Standards, including casual minimum wages, overtime rates, annual and personal leave entitlements, and penalty rates for weekend and public holiday work.
It is alleged the three workers were underpaid a total of $40,009.
The visa holder was allegedly underpaid $7,298 and the other workers were allegedly underpaid $22,583 and $10,128.
Phillip Island Souvenirs Pty Ltd allegedly also breached workplace laws by failing to issue the workers with compliant pay slips and failing, upon the workers' requests, to provide them with copies of their employment records or make the records available for their inspection.
It is alleged Mr Wisbey was involved in all the contraventions.
Fair Work Ombudsman Anna Booth said employers paying unlawfully low flat rates were on notice.
"We will continue to take enforcement action against employers who allegedly disregard the rights of their employees, and the result can be significant back-payment orders as well as penalties," Ms Booth said.
"Underpayments quickly add up, with workers in this case allegedly underpaid by more than 30 per cent for many hours.
"Employers also need to be aware that taking action to protect visa holder workers is among our top priorities.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
The FWO is seeking penalties in court for multiple alleged contraventions of workplace laws. Phillip Island Souvenirs Pty Ltd faces penalties of up to $31,300 to $66,600 per contravention and Mr Wisbey faces penalties of up to $6,260 to $13,320 per contravention.
The regulator is also seeking a court order requiring the company to rectify the alleged underpayments in full, plus interest and superannuation.
A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 11 December 2024.
Workers and employers are encouraged to use the Pay and Conditions Tool to find the rates of pay the law requires.
The Fair Work Ombudsman filed 146 litigations against employers involving visa holder workers, and secured nearly $23 million in penalties in cases that have included visa holder workers, in the seven financial years to June 2024.
