Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd
Citation: [2022] FCA 1317
At a glance
- Penalty
- $475,200
- Employees affected
- 8
- Awards cited
- MA000014, MA000191
What happened
85 Degrees Coffee Australia operated retail stores and food manufacturing facilities in New South Wales. From July 2016 to June 2017, the company employed eight student interns from a Taiwanese university as part of a 12-month paid internship program arranged between the university and the company's Taiwanese parent. Eight employees worked in stores and factories but were paid only $1,650 to $1,750 per month, which represented approximately 30% of their lawful entitlements. Individual underpayments ranged from $50,000 to $58,000 per employee during the single-year period.
What was decided
The court declared that the company contravened multiple provisions of the Fair Work Act and awards including failure to pay minimum wages, weekend and public holiday penalty rates, overtime rates, and superannuation contributions. The company also failed to keep required employment records and provide payslips. The aggregate underpayment was over $470,000. The court imposed a penalty of $475,200. The company had previously given enforceable undertakings to the Fair Work Ombudsman in 2015 regarding similar conduct, demonstrating prior knowledge of its legal obligations.
What it means for employers
Employers who employ international or student workers remain subject to the same award and superannuation obligations as all other employers and must not use non-resident or temporary visa status as justification for underpayment. Failure to keep proper records and provide payslips will be treated seriously. Prior undertakings regarding compliance increase penalty outcomes. Rectifying underpayments after discovery, while improving the employer's position, does not eliminate civil penalties.
What it means for employees
Even temporary or international workers are entitled to full award rates, penalty rates, overtime, and superannuation contributions. Employers cannot pay flat rates significantly below award minimums. Employees should keep records of hours worked and request itemised payslips to verify correct payment. If underpaid, the Fair Work Ombudsman can pursue recovery of unpaid entitlements.
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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 →