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A delicate situation

UnderpaymentsOctober 31, 2014

A delicate situation (Last Updated On: October 31, 2014)

A Flemington Market delicatessen and café has been found to have underpaid a staff member for three decades. Scala Bros is accountable for underpaying an assistant who happens to be related to both the previous owner, who is now deceased, and the current director. The judge found that the director had not only breached the Fair Work Act 2009, but also three previous periods of industrial law.

Judge Robert Cameron concluded that the employer failed to pay the employee accrued annual leave and long service leave when their employment ended. The employee also went without the correct minimum wages, allowances or overtime for thirty years and Scala Bros also failed to make superannuation contributions and did not provide payslips to the employee.

The director argued that she could not be entirely held accountable as she did not underpay the employee whilst her deceased father was running the business. Back then the employer had “no particular responsibility for, or duties in, Scala Bros, other than to sign company documents as requested”.

The Federal Circuit Court is yet to determine compensation and penalties to Scala Bros however it was revealed that the director was responsible for the failure to pay the employee his correct entitlements and for the company’s subsequent failure to abide by the resulting compliance notice. It just goes to show that it doesn’t pay to underpay.

If you would like peace of mind and the reassurance of knowing that you are correctly paying your staff and free from looming investigations from the Fair Work Ombudsman call Employsure today on 1300 651 415. We can review your staff’ current wage entitlements and ensure that you have the right policies and procedures in place. We are ready to take your call.

*Information sourced via Workplace Express website.

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