Record penalty imposed on employer

The Federal Circuit Court has imposed a record penalty of $660,000 on an employer after finding that a worker, an Afghani refugee with limited English, had not been paid for a number of weeks in 2012 and then was paid a flat rate substantially below the relevant award rate.  The total underpayment was $25,588.  The Court described the employer’s conduct as ‘an egregious underpayment’  which gave the employer an ‘unfair advantage’.  In addition to the penalty, the Court imposed an injunction on the business owner preventing him from contravening the Award and the National Employment Standards, the breach of which could result in contempt of court proceedings.  Ms Natalie James, the Fair Work Ombudsman, said that the record penalty ‘ should serve as a warning to employers that those who exploit workers face major financial consequences’ and that ‘Employers who deliberately exploit vulnerable workers should be on notice that we will do everything in our power to hold you to account’: Media Release, 2 August 2017, www.fairwork.gov.au

By | 2018-06-04T08:04:23+10:00 August 16th, 2017|Elizabeth's blog, News, Uncategorized|

Leave A Comment