Fair Work Ombudsman
Citation: FWO-2022-02-22-buchanan-penalty-media-release
At a glance
- Penalty
- $14,000
- Employees affected
- 1
What happened
Khan Andrew Buchanan, who operates RiverCity Bus Service in Queensland, was penalized for unlawfully requiring a casual bus driver to repay JobKeeper payments. Between 2017 and 2020, Mr. Buchanan received fortnightly JobKeeper payments of $1500 for the driver. He then required the driver to repay amounts equal to the difference between the net JobKeeper payment and the driver’s wages. In total, the driver repaid $5805. In September 2020, Mr. Buchanan also failed to pass on the full JobKeeper payment to the driver. A Fair Work Inspector investigated after the driver requested assistance.
What was decided
The Federal Circuit and Family Court imposed a $14,000 penalty against Mr. Buchanan for breaching the Fair Work Act. The court described his conduct as 'reprehensible', 'deliberate', and 'calculated'. Mr. Buchanan has already back-paid the driver $6270.40 to rectify the underpayments. Fair Work Ombudsman Sandra Parker emphasized the importance of upholding the integrity of government programs and warned against cashbacks. Judge Vasta highlighted the breach of trust and lack of apology from Mr. Buchanan.
What it means for employers
Employers must ensure they comply with all legal requirements when receiving and distributing government assistance payments like JobKeeper. Requiring employees to repay wages or portions of government assistance is generally unlawful and can result in significant penalties. Transparency and adherence to the Fair Work Act are crucial.
What it means for employees
Employees who receive government assistance payments through their employer are entitled to receive the full amount. If an employer requires repayment of wages or portions of government assistance, employees should contact the Fair Work Ombudsman for assistance.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2022-media-releases/february-2022/20220222-buchanan-penalty-media-releaseWant more cases like this?
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This summary was drafted by AI 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 →