Fair Work Ombudsman
Citation: FWO-2023-03-21-jmsl-penalty-media-release
At a glance
- Respondent
- JMSL Pty Ltd
- Penalty
- $115,603
- Employees affected
- 2
- Awards cited
- MA000173
What happened
JMSL Pty Ltd, a former franchisee of The Coffee Club in Geelong, Victoria, and its sole director, Edison Peng, underpaid two young workers a total of $15,412 between May 2016 and November 2018. The workers were paid flat rates as low as $15 per hour, resulting in underpayment of junior hourly rates, casual loadings, weekend and public holiday penalty rates. The company and director falsified records and provided them to the Fair Work Ombudsman. They back-paid the workers after legal action commenced. The Fair Work Ombudsman had previously warned Mr Peng about workplace law obligations.
What was decided
The Federal Circuit and Family Court imposed a $96,336 penalty against JMSL Pty Ltd and a $19,267 penalty against Edison Peng. They were found to have deliberately breached workplace laws, falsified records, and provided false information to the Fair Work Ombudsman. The court noted Mr Peng had received prior warnings and that the conduct was inexcusable. The total penalty amount was $115,603. The court found the workers suffered significant loss.
What it means for employers
Employers must comply with workplace laws and ensure employees receive correct pay and entitlements. Deliberately falsifying records and underpaying employees, particularly vulnerable workers like young people, carries significant penalties. Employers should be aware of the Fair Work Ombudsman’s focus on enforcing compliance in the fast food, restaurant, and cafe sector.
What it means for employees
Employees should be aware of their pay and entitlement rights and seek assistance from the Fair Work Ombudsman if they suspect underpayment or other workplace law breaches. The Fair Work Ombudsman offers 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/2023-media-releases/march-2023/20230321-jmsl-penalty-media-releaseWant more cases like this?
FairWork Mate tracks Fair Work Ombudsman, Fair Work Commission and Federal Court decisions across Australia. The full dataset, with structured fields for awards cited, industry, penalty amounts and affected employee counts, is available through the Business API. FairWork Mate AI answers plain-English questions grounded on the full corpus.
Individual case summaries on this site are free. API + AI access is a paid product. Contact us for pricing or a 50% off first month.
Get notified on new Fair Work cases
Free email alerts when we publish new underpayment decisions, penalty orders, and workplace law updates.
Free forever. No spam. Unsubscribe anytime.
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 →