The operator of two United Petroleum service stations in Tasmania in 2021 has been hit with a fine for staff underpayments.
Between December 2020 and February 2021 four migrant workers were underpaid $20,230 and were also issued false pay slips at two Hobart outlets – Sandy Bay and Kingston.
The four affected workers were due wages according to the Vehicle Repair, Services and Retail Award 2020. Instead they were paid flat rates ranging from $16 to $23 per hour for a fixed number of hours per week – and no payment for extra hours worked.
The Federal Circuit and Family Court imposed a $135,143 penalty against KLM Foods Pty Ltd, which operated the two outlets.
Sole director issued with $44,078 fine
KLM Foods’ sole director, Loveleen Gupta, has been issued with a $44,078 penalty. Gupta was also a manager of Vizaan Pty Ltd, the company (since liquidated) that employed one of the Kingston outlet workers.
KLM Foods and Vizaan have since rectified the underpayments for all four workers.
However, the court found both KLM Foods and Gupta breached the Fair Work Act by requiring one of the workers to make an unlawful cashback payment of $6,353 to KLM Foods in June 2023. This underpayment has now been rectified.
KLM Foods and Gupta also provided the FWO with false timesheets, failed to have written agreements for part-time staff, and breached record-keeping rules.
Judge Karl Blake found that KLM Foods and Gupta had “blatantly disregarded” the terms of Awards, and shown no remorse. He described the worker’s forced unlawful repayment of wages as “particularly unpalatable”.
Exploitation of migrant workers
Noting evidence presented in court that the exploitation of migrant workers “remains a significant problem in the Australian community”, Judge Blake said: “There is a need to send a strong and clear message to ensure that the type of conduct disclosed in this case is not repeated.”
The Fair Work Ombudsman investigated the matter as part of a broader investigation into the United Petroleum network which involved audits of 20 outlets across Tasmania, Queensland, New South Wales, Victoria and South Australia.
The audits have also led to the FWO filing litigations against Sai Enterprises Pty Ltd and Raman Monga, in relation to an SA outlet, and Navaneeth Gogikar in relation to a Queensland outlet. Both court cases are ongoing.
