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
the Applicant 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. the Applicant 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 the Applicant and a $44,078 penalty against the Respondent. The total penalty amount was $179,221. The court found that the Applicant and the Respondent 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.
Want this applied to your situation?
Reading the decision is free. FairWork Mate goes further — it reads the full case library and applies precedents like this one to your specific facts, citing the cases as it reasons. General information, not a guaranteed outcome or legal advice.
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-releaseSend your details to Liquid Employment Lawyers
Liquid Employment Lawyers is a paid legal service and our referral partner, not free Fair Work advice. Tell them what has happened and a member of their team will call you back. For free general guidance, use our tools or call the Fair Work Ombudsman on 13 13 94.
Prefer to read first? About Liquid Employment Lawyers · Not sure if you need a lawyer? Read the legal help guides
Want more cases like this?
FairWork Mate tracks Fair Work Ombudsman, Fair Work Commission and Federal Court decisions across Australia. The AI advisor answers plain-English questions grounded on the full corpus — awards cited, industry, penalty amounts and affected employee counts — with a citation to the underlying decision on every answer.
Individual case summaries on this site are free. The full FWC and Federal Court library behind every advisor answer is on Pro.
FairWork Mate AI
This is one decision. Pro reads all of them.
Free case pages cite the top 250 decisions. Pro opens the full Fair Work Commission and Federal Court library, cross-references your own situation against it, and cites the decision behind every answer — plus document upload, so it can read your letter or contract line by line. 150 questions a month, cancel anytime.
Just need this week sorted? A 7-Day Pass is 50 questions over 7 days, no account. Get a 7-Day Pass — $14.99
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 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