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Franchisee fined $110,000 for underpaying staff

UnderpaymentsFebruary 3, 2015

Franchisee fined $110,000 for underpaying staff (Last Updated On: February 3, 2015)

A Gloria Jeans franchisee in Victoria has been fined $110,000 for paying staff as little as $8 an hour to make customers’ coffees.

After a Fair Work Ombudsman investigation, it was found that 22 workers were underpaid over a two year period. The workers collectively are owed over $83,000.

It was found that the owners of the franchisee deliberately underpaid workers because the shop was not producing sufficient income.

“We treat underpayments of young and overseas workers particularly serious because they can be vulnerable if they are not fully aware of their workplace rights or are reluctant to complain,” said Natalie James from the Fair Work Ombudsman.

The franchisee not only has to pay back the employees, but they now face a fine of $110,000.

When a business is under performing, it is a very stressful and draining experience to try and produce enough revenue to keep the business afloat. Even during these times, it doesn’t excuse anyone from not abiding to their obligations under the Fair Work Act.

If you need some guidance on pay rate for your employees, please fill in the form below or contact us on 1300 651 415. We are here to help.

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