Fair Work Ombudsman
Citation: FWO-2023-07-05-nq-powertrain-penalty-media-release
At a glance
- Respondent
- NQ Powertrain Pty Ltd
- Penalty
- $106,431
- Employees affected
- 87
What happened
NQ Powertrain Pty Ltd, a labour-hire company based in Far North Queensland, has been penalised by the Federal Circuit and Family Court. The company admitted to breaching workplace laws by underpaying 87 visa holders a total of $49,933 between December 2018 and May 2020. The workers, from countries including Papua New Guinea, Vanuatu and the Solomon Islands, were employed under the Pacific Labour Scheme (PLS) and Seasonal Worker Programme (SWP) and supplied to farms near Cairns. The company made unlawful deductions for accommodation and transport costs and failed to pay correct minimum entitlements under the Horticulture Award 2010. NQ Powertrain ceased trading in 2022.
What was decided
The Federal Circuit and Family Court imposed a penalty of $106,430.63 against NQ Powertrain Pty Ltd for breaching workplace laws. The court found the company made unlawful deductions from workers’ wages and failed to pay correct minimum entitlements. The company rectified the underpayments after the Fair Work Ombudsman investigated. The Fair Work Ombudsman emphasised the importance of compliance in the agriculture sector and protecting vulnerable workers. The SWP and PLS have since been consolidated under the Pacific Australia Labour Mobility (PALM) Scheme.
What it means for employers
Employers, particularly labour hire companies in the agriculture sector, must ensure they comply with workplace laws and pay correct entitlements. Unlawful deductions from wages and failing to pay minimum entitlements can result in significant penalties. Employers should review their payroll practices and seek advice if unsure about their obligations.
What it means for employees
Visa holders and other vulnerable workers should be aware of their workplace rights and entitlements. If employees have concerns about their pay or entitlements, they should contact the Fair Work Ombudsman for free advice and assistance. A free interpreter service is 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/july-2023/20230705-nq-powertrain-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 →