A former restaurant boss who said he would reimburse an underpaid worker only if she swore she had been kidnapped and forced to work for him will have his salary docked until 2018 to pay off related court fines, the Fair Work Ombudsman says.
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It is the first time the independent government agency has successfully obtained an attachment of earnings order, which ensures penalties are paid.
David Anderson operated the Curry Garden Indian Restaurant in Bendigo through a company of which he was sole director, Sona Peaks Pty Ltd.
Mr Anderson no longer operates the restaurant – which new owners now run under a slightly different name – while Sona Peaks has entered liquidation.
The businessman, who owes almost $27,000 in penalties, will be forced to pay $250 per week.
“In a first, the Fair Work Ombudsman has successfully obtained a court order for $500 a fortnight to be taken from (Mr Anderson’s) … earnings to pay off outstanding court-imposed penalties,” the agency said.
Mr Anderson – who works in Melbourne – and the company he partly owned were fined a combined $15,500 in January 2015 for refusing to back-pay an employee owed more than $5000 for work carried out in 2012.
The staff member was paid between $12.50 and $15.50 per hour when she had a legal right to $16.57 per hour and $34.11 on weekends and public holidays.
When the Fair Work Ombudsman sent a contravention letter to Mr Anderson requesting the former worker be paid what she was owed, Mr Anderson said he would reimburse her only if she provided a statement saying she had been kidnapped and forced to work against her will.
Just six months later, the company was slugged $118,650 and Mr Anderson more than $23,000 for repeatedly underpaying restaurant employees.
Mr Anderson, as the company’s former director and sole operator, must still pay his penalties.
“Following an application by the Fair Work Ombudsman to the Federal Circuit Court, Judge John O’Sullivan has issued an order requiring Mr Anderson to pay $500 a fortnight until his penalties of $26,715 are paid,” the Fair Work Ombudsman Natalie James said.
“The money will be automatically deducted by his current Melbourne employer from his salary and paid directly to the Fair Work Ombudsman.”
Ms James said her agency would pursue other directors who did not pay court penalties.
“If business operators and directors do not co-operate with us and ignore their workplace obligations, if they fail to make good and pay penalties, we will not sit on our hands and let them get away with it,’’ she said.
“Building a culture of compliance with workplace law is important, and employers should be aware that we are prepared to take all actions available to us where appropriate.”
The payments amount to almost 20 per cent of Mr Anderson’s salary and will be paid back in just over two years.
Mr Anderson failed to appear in court over the matter and could not be reached for comment.
He will have to pay almost $1600 in court costs as part of his penalty.
Ms James urged employers who had uncertainty about their workplace practices to visit www.fairwork.gov.au or call the Fair Work information line on 13 13 94.
