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The commercial laundry business was found by the FWO to have underpaid 22 workers across four locations nationally.
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Business penalised $90,000 for underpaying workers
30 January 2023
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10 minute read
A commercial laundry operation has been penalised a total of $90,000 in court after the Fair Work Ombudsman (FWO) found it had been underpaying workers, with the penalties being levied against four different businesses within the operation.
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The organisations trading under South Pacific Laundry had the penalties imposed across four different operations:
- Specialised Linen Services (Sydney) Pty Ltd of Bankstown: $54,000
- Specialised Linen Services (Adelaide) Pty Ltd of Torrensville: $10,000
- Specialised Linen Services (Cairns) Pty Ltd of Portsmith and Paget: $14,000
- Specialised Linen Services (Melbourne) Pty Ltd of Broadmeadows: $12,000
The FWO said the firm had underpaid 22 workers a total of $24,134 during January 2018 and between July and October 2018.
At the time of the breaches, the ombudsman found one of the affected workers was 17 years old and four other workers were visa holders.
The FWO began to investigate the Cairns-based business as part of its Workplace Basics Campaign but then expanded its investigation to look into the other companies after receiving anonymous reports.
The regulator found that the companies failed to pay overtime penalties to non-shift workers, with the Adelaide and Cairns businesses having underpaid or did not pay public holiday-related penalties, while the Sydney firm underpaid annual leave entitlements and loading.
All workers affected performed laundry work and were employed in full-time, part-time, and casual positions with the FWO finding the underpayments of individual employees being up to $12,090 during the period under investigation.
The four companies did back-pay the workers but only after the Fair Work Ombudsman commenced its investigation.
When imposing the penalties, Deputy Chief Judge Patrizia Mercuri said “employers have a particular responsibility in relation to vulnerable employees to ensure that their rights are respected.”
She said the delayed rectification of the underpayments “does not displace the loss suffered by the employees who did not have access to their wages and other employment entitlements in a timely manner.”
Fair Work Ombudsman Sandra Parker was concerned that vulnerable workers — a 17-year-old and four visa holders — had been exploited.
“We continue to prioritise the protection of vulnerable workers, who we know can be at particular risk of exploitation, and that includes pursuing penalties in court against employers who fail to meet their workers’ rights,” said Ms Parker.
“All workers have the same basic rights in Australia, regardless of age or visa status, and anyone with concerns about their pay or entitlements should contact the FWO for free assistance.”
The FWO revealed that in 2021–22, 26 per cent of its new litigations included a migrant worker, with almost $1.8 million in court-ordered penalties secured in matters that included migrant workers.
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