Fair Work Ombudsman
Citation: FWO-2023-01-27-specialised-linen-services-penalty-media-release
At a glance
- Penalty
- $90,000
- Employees affected
- 22
- Awards cited
- MA000171
What happened
The Fair Work Ombudsman secured $90,000 in penalties against four companies operating commercial laundry businesses under the name ‘South Pacific Laundry’. These companies are Specialised Linen Services (Sydney), Specialised Linen Services (Adelaide), Specialised Linen Services (Cairns), and Specialised Linen Services (Melbourne). Twenty-two workers were underpaid a total of $24,134 between January 2018 and October 2018. One worker was 17 years old, and four were visa holders. The investigation began with a Cairns-based company as part of the Workplace Basics Campaign and expanded after anonymous reports. Affected workers held full-time, part-time, and casual positions.
What was decided
The Federal Circuit and Family Court imposed penalties of $54,000 against Specialised Linen Services (Sydney), $10,000 against Specialised Linen Services (Adelaide), $14,000 against Specialised Linen Services (Cairns), and $12,000 against Specialised Linen Services (Melbourne). The court found the companies failed to pay overtime, shiftwork, weekend, and public holiday penalties, as well as annual leave entitlements and loading. Deputy Chief Judge Mercuri noted employers have a responsibility to protect vulnerable employees. The companies back-paid the workers after the Fair Work Ombudsman’s investigation. The penalties are intended to deter similar conduct in the laundry industry.
What it means for employers
Employers, particularly those in industries with vulnerable workers, must ensure compliance with workplace laws and awards. Failing to do so can result in significant penalties. The court emphasised the heightened responsibility to protect vulnerable employees such as young workers and visa holders. Rectifying underpayments does not excuse the initial failure to pay entitlements on time.
What it means for employees
Workers, regardless of age or visa status, are entitled to the same basic rights. Employees who believe they have been underpaid or denied entitlements should contact the Fair Work Ombudsman for free assistance. Interpreter services are available.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/january-2023/20230127-specialised-linen-services-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 →