Fair Work Ombudsman
At a glance
- Foot & Thai Massage Pty Ltd
- $1,000,000
- 7
What happened
The Fair Work Ombudsman secured $966,890 in penalties against the Respondent, his former company Foot & Thai Massage Pty Ltd, and the Second Respondent. This followed a civil case involving seven Filipino workers who were exploited at the ‘foot&thai’ massage parlour in Belconnen, Canberra, between June 2012 and February 2016. The workers, who held 457 visas, were underpaid a total of $971,092 and subjected to coercion, discrimination, and threats, including threats to harm their families if they complained. Six employees were also required to pay back a portion of their wages. The Fair Work Ombudsman began investigating the parlour in 2016.
What was decided
The Federal Court imposed a $778,100 penalty against Foot & Thai Massage Pty Ltd, $150,140 against the Respondent, and $38,650 against the Second Respondent. The court also ordered them to pay a total of $1.166 million in back-pay and compensation to the workers, plus interest. Justice Katzmann found the workers lived in fear of the parlour’s owner. The Respondent has appealed the liability and penalty decisions to the Full Federal Court. The penalties are the third-highest in the Fair Work Ombudsman’s history.
What it means for employers
Employers must ensure compliance with workplace laws, particularly when dealing with visa holders. Threats or coercion to prevent workers from exercising their rights are unacceptable and will result in significant penalties. Employers should be aware of increased penalties for exploitative conduct since 2017.
What it means for employees
Visa holder workers have the same workplace rights as all other Australian workers. Employees should feel safe to raise concerns about their employment without fear of reprisal, including threats to their families or visa status. If workers experience exploitation, they should contact the Fair Work Ombudsman.
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