Fair Work Ombudsman
Citation: FWO-2022-03-22-little-india-penalty-media-release
At a glance
- Penalty
- $42,336
- Employees affected
- 17
- Awards cited
- MA000173
What happened
The Fair Work Ombudsman investigated Satchithanantha N Chelliah and Mahesvery Toolseram, trustees of The Chelliah Family Trust, who operate the 'Little India' takeaway food business in Hobart. They paid 17 casual fast food employees a flat rate of $10 per hour. This resulted in underpayments of minimum wages, casual loading, weekend penalties, and public holiday rates under the Fast Food Industry Award 2010. The underpayments ranged from $270 to $15,224 per employee, totaling over $63,000. The employees included three visa holders and two young workers. The underpayments occurred between January and June 2019, and between July 2017 and June 2019.
What was decided
The Federal Circuit and Family Court imposed a penalty of $42,336 against the trustees for breaching the Fair Work Act. The court found that ignorance of the law is not a defence. The trustees were also ordered to commission an independent audit, register with the My Account portal, complete employer courses, and undergo workplace training. The underpayments of $63,065.74 were rectified by October 2020. Deputy Chief Judge Mercuri stated the penalty should deter similar conduct, particularly in industries with vulnerable workers.
What it means for employers
Employers, especially those in the fast food, restaurant, and café sectors, must ensure they are complying with all applicable wage laws and awards. Ignorance of the law is not a valid excuse for underpayment or other workplace breaches. Providing adequate training and seeking professional advice is crucial to avoid costly penalties and legal action.
What it means for employees
Employees, particularly those on visas or who are young workers, should be aware of their workplace rights and entitlements. If you suspect you are being underpaid or treated unfairly, contact the Fair Work Ombudsman for free advice and 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/march-2022/20220322-little-india-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 →