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NSW labour hire company faces legal action

UnderpaymentsApril 23, 2014

NSW labour hire company faces legal action (Last Updated On: April 23, 2014)

The Fair Work Ombudsman (FWO) is seeking legal action against a labour hire company used by Primo Smallgoods over allegations that international workers have been paid less than half the minimum wage and advised not to pay tax.

A FWO investigation found that ten employees were underpaid more than $41,000.

Primo initially denied the allegations but the FWO along with the Australasian Meat Industry Employees Union has discovered enough evidence from auditing the labour hire company’s books.

The union received submissions from 75 workers, stating that they were advised by the labour hire company to lodge an Australian Business Number (ABN) without being advised to get a tax file number.

Legal action against the labour hire company, Raying Holding Pty Ltd and another individual is currently underway.

Raying Holding faces penalties of up to $51,000 per breach and the individual faces a maximum penalty of $10,200 per contravention.

Primo has begun auditing the labour hire companies it uses.

*Information sourced via Farm Online and the ABC website.

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