CURRY Garden Indian Restaurant told one of its workers to say she had been kidnapped and forced to work against her will in an attempt to avoid back-paying her $5000.
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Operator of the Pall Mall restaurant David Peter Anderson, of Eltham, was fined $3000 and the parent company Sona Peaks Pty Ltd copped a $12,500 fine from the Federal Circuit Court over the "bizarre" request.
The 26-year-old employee was paid a flat rate of $12.50 per hour, increasing to $15.50 per hour, during her employment at the restaurant between May and December, 2012.
Under the Restaurant Industry Award, she should have been paid $16.57 an hour, increasing to $34.11 on weekends and public holidays.
The Fair Work Ombudsman sent a contravention letter to the Curry Garden operator requesting the worker be reimbursed.
Anderson declined the request, advising he would only back-pay the employee if she provided a statement saying she had been kidnapped and forced to work against her will.
In his decision, Judge Grant Riethmuller said the Fair Work inspector refused the request.
"Not surprisingly, the Fair Work inspector advised that such bizarre conditions would not be met," he said.
The court heard Anderson refused to respond to a Compliance Notice from May 2013 and claimed the employee had "agreed with the rates that were paid".
Under the Fair Work Act, employers must comply with the notices unless they have a reasonable excuse.
Judge Riethmuller said Anderson had shown no remorse for the "deliberate" breach of workplace laws, and his decision to ignore the Compliance Notice was "extraordinary".
Anderson only agreed to reimburse the employee after the Fair Work Ombudsman started legal action.
Judge Riethmuller said Anderson's eventual admission of underpayment was more an acceptance of liability rather than accepting the inappropriate conduct.
"This case demonstrates that employers who refuse to co-operate and promptly rectify underpayments can face a significant fine on top of the requirement to back-pay employees in full," Fair Work Ombudsman Natalie James said.
"Successful litigations such as this also benefit employers who are complying with workplace laws, because it helps them to compete on a level playing field."
