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Alleged underpayment, false records land business in court

Legal action against a Victorian business has commenced after a raft of alleged workplace law breaches were laid against it, including false or misleading records.

Bookkeeper Reporter 29 August 2019
— 1 minute read

The Fair Work Ombudsman has commenced legal action against the operators of two Hello Juice outlets in Victoria, alleging they underpaid 27 workers a total of almost $40,000.

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Facing the Federal Circuit Court are Skypac Group Pty Ltd and Skypic Group Pty Ltd — which operate Hello Juice outlets in shopping centres at Werribee and Geelong, respectively — and Victorian woman Hua Gong, who was the general manager of both stores.

The FWO further alleges that Ms Gong and Skypac Group breached workplace laws by providing inspectors with false or misleading records, and allegedly breached laws relating to payslips, record-keeping and (by Skypic Group and Ms Gong only) and complying with a Notice to Produce documents.

Ms Gong faces penalties of up to $10,800 per contravention for the Geelong store and $12,600 for the Werribee store, Skypic Group Pty Ltd up to $54,000 per contravention and Skypac Group Pty Ltd up to $63,000 per contravention.

The alleged underpayments were discovered during self-initiated audits and it is alleged that some employees were paid flat rates as low as $10 per hour, which resulted in underpayment of the ordinary hourly rates, casual loadings and penalty rates for weekend and public holiday work they were entitled to under the Fast Food Industry Award 2010.

In total, it is alleged that 27 employees were underpaid a total of $38,458 over a period of several months in 2017, including juniors under the age of 18. Workers at the Geelong store were allegedly underpaid $23,902.47 and workers at the Werribee store were allegedly underpaid $14,555.64.

Ms Gong and Skypac Group Pty Ltd are also alleged to have breached laws relating to cashback arrangements on two separate occasions by requiring a worker aged in her 30s at the Werribee store to pay amounts totalling $1,300 to cover part of a rectification payment and a tax refund payment made to her.

“Employers should be aware that the Fair Work Ombudsman takes allegations of cashback breaches extremely seriously. Any employees with concerns should contact us,” Fair Work Ombudsman Sandra Parker said.

The FWO is seeking court orders requiring the companies and Ms Gong to fully back-pay the employees, who have been only been partially back-paid to date.

A directions hearing is listed in the Federal Circuit Court in Melbourne on 15 November 2019.

Alleged underpayment, false records land business in court
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