The Federal Circuit Court has fined the company which operated the Curry Garden Indian Restaurant in Pall Mall $118,650 following an investigation by the Fair Work Ombudsman.
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Sona Peaks Pty Ltd part owner and sole director David Peter Anderson received a further fine of $23,715 for the underpayment of casual workers at the restaurant between October 2012 and September 2013.
The company will also be required to back pay the workers’ outstanding entitlements after a cook and eight waitstaff were paid flat rates as low as $10.50 an hour.
The lawful minimum hourly rates were $13.56 to $14.87 for the junior employees and $15.96 to $17.49 for the adult employees, plus penalty rates.
Fair Work Ombudsman Natalie James said Sona Peaks and Mr Anderson had continued to underpay workers at the restaurant despite numerous warnings and an earlier court action involving a worker who was underpaid by almost $20 an hour in 2012.
“We are happy to resolve cases of inadvertent underpayments co-operatively with employers – but we will not tolerate cases of repeated and blatant underpayments by employers who refuse to take corrective action,” she said.
In the previous case Sona Peaks was fined $12,500 and Mr Anderson was fined $3000 after he declined a request from the FWO to back pay the worker her entitlements unless she provided a statement saying she had been kidnapped and forced to work against her will.
At the time Judge Grant Riethmuller said the Fair Work inspector had refused the request.
"Not surprisingly, the Fair Work inspector advised that such bizarre conditions would not be met," he said.
Mr Anderson only agreed to reimburse the employee after the Fair Work Ombudsman started legal action.
The latest action was a result of underpayments of more than $11,000 involving nine employees including three teenagers and an Indian international student.
Ms James said the fines had made it clear that recalcitrant employers who repeatedly underpaid their staff would face serious financial consequences.
Record-keeping obligations were also breached.
– with ADAM HOLMES