Fair Work Ombudsman
Citation: FWO-2024-02-12-easy-vaping-penalty-media-release
At a glance
- Respondent
- The Easy Vaping Company Pty Ltd
- Penalty
- $37,485
- Employees affected
- 1
What happened
The Fair Work Ombudsman secured penalties against The Easy Vaping Company Pty Ltd and its husband-and-wife operators, Kate Dillon Chan and Edward Chan. They exploited a Chinese worker sponsored on a 457 visa between 2017 and 2020. The company pressured the worker to participate in an unlawful cashback arrangement, requiring him to withdraw cash from his wages and hand it over to the Respondent. The worker was paid a total of $13,000 in back-pay after the Fair Work Ombudsman intervened.
What was decided
The Federal Circuit and Family Court imposed a $26,775 penalty against The Easy Vaping Company Pty Ltd and $5,355 penalties against Kate Dillon Chan and Edward Chan. The court found the company and individuals deliberately breached workplace laws. the Commissioner described the cashback arrangement as “deceitful” and a “calculated strategy”. The penalties are intended to deter similar exploitative conduct. The Fair Work Ombudsman has secured $15 million in penalties in visa holder litigations since 2017.
What it means for employers
Employers must ensure they comply with workplace laws, regardless of a worker's visa status. Unlawful cashback arrangements and other exploitative practices will not be tolerated. Employers need to be aware of their obligations to pay the correct minimum wage and avoid deceptive practices to disguise non-compliance.
What it means for employees
Visa holders have the same workplace rights as Australian citizens. Employees should seek assistance from the Fair Work Ombudsman if they believe their pay or entitlements are being withheld or if they are pressured into unlawful arrangements.
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This summary was drafted 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 →