Fair Work Ombudsman
Citation: FWO-2025-02-17-klm-gupta-penalty-media-release
At a glance
- Respondent
- KLM Foods Pty Ltd
- Penalty
- $179,221
- Employees affected
- 4
What happened
KLM Foods Pty Ltd and Loveleen Gupta were penalized for underpaying four migrant workers at two United Petroleum-branded outlets in Sandy Bay and Kingston, Tasmania, between December 2020 and February 2021. The workers, including those from India and Bangladesh, were paid flat rates ranging from $16 to $23 per hour, resulting in underpayment of minimum wages, overtime, and penalty rates. One worker, aged 19-20, was a junior. KLM Foods also required one worker to make an unlawful $6,353 cashback payment and provided false pay slips and timesheets. Vizaan Pty Ltd, a company involved in the Kingston outlet, also played a role.
What was decided
The Federal Circuit and Family Court imposed a $135,143 penalty against KLM Foods Pty Ltd and a $44,078 penalty against Loveleen Gupta. The total penalty amount was $179,221. The court found that KLM Foods and Mr Gupta had disregarded Award terms and showed no remorse. The judge noted the vulnerability of some workers and the seriousness of the unlawful cashback arrangement. The underpayments and cashback have now been rectified.
What it means for employers
Employers must ensure compliance with Australian workplace laws and pay all employees, regardless of visa status, at least the minimum wage and applicable penalty rates. Maintaining accurate time and wages records is crucial, and providing false records carries significant penalties. Employers should be aware of the Fair Work Ombudsman’s focus on protecting vulnerable workers.
What it means for employees
Visa holders have the same workplace rights as Australian citizens and are entitled to minimum wage and penalty rates. Employees should seek advice from the Fair Work Ombudsman if they suspect they are being underpaid or treated unfairly. It is unlawful for employers to require employees to make cashback payments to cover underpayments.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2025-media-releases/february-2025/20250217-klm-gupta-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 →