Shahin Enterprises Pty Ltd v the Respondent
Citation: [2020] FCAFC 57
At a glance
- Employees affected
- 1
What happened
the Applicant worked for Shahin Enterprises (On The Run petrol station and convenience stores) in Adelaide from November 2015 to December 2016 as a permanent part-time console operator working 25 hours per week. He typically worked midnight to 7 am shifts, alone for much of the shift. Shahin required employees to arrive 10-15 minutes early for handover duties but did not pay for this time. the Applicant was directed to take 30-minute unpaid meal breaks while standing at the counter ready to serve customers.
What was decided
The court found underpayment across three areas. First, the Applicant was entitled to payment for early arrival time (approximately 15 minutes on 90% of shifts and 10 minutes on remaining shifts) totalling $850.15. Second, the Applicant had not taken meaningful meal breaks and was entitled to payment for the 30-minute periods wrongfully classified as unpaid breaks, totalling $1,424.53. Third, the Applicant was entitled to overtime penalty loading of $67.13 for hours exceeding 38 per week. Total underpayment was approximately $2,341.81 plus interest.
What it means for employers
Employers cannot require employees to work unpaid time before their rostered start by requiring handover duties without allocating paid time. Meal breaks must be genuine breaks, not time spent at the counter ready to serve customers. Employees working voluntary overtime cannot retrospectively be reclassified as genuine volunteers to avoid paying the overtime rate with penalty loading.
What it means for employees
You are entitled to payment for all time worked, including handover duties. Meal breaks should allow genuine rest; standing at a counter ready to serve is not a proper break. If your employer requires you to arrive early or work beyond ordinary hours, ensure proper rates are paid. Keep records of actual start times and break activities.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →