Underpayments of wages

Underpayments of wages

The former operator of an Indian restaurant in North-East Victoria has agreed to back-pay two cooks more than $20,000, following an investigation by the Fair Work Ombudsman.


The cooks were employed at the Hot Million Indian Restaurant in Mount Beauty, when it was owned and operated by Victorian man Hargulab Singh through his company Gurukirpa Ji Pty Ltd.


Both employees were males from India, including a 23-year-old on a 457 visa and a 36-year-old immigrant who is a permanent resident.


The underpayments occurred because the employees received sporadic, irregular payments that were the equivalent of average take-home-pay of $11.42 and $9.84 an hour, respectively.


Under the Restaurant Industry Award 2010, the workers were entitled to at least $17.49 for normal hours and up to $34.99 an hour for shifts that attracted penalty rates, such as weekend, public holiday and overtime work.


The company also underpaid the employees’ annual leave entitlements, made unauthorised deductions from their pay, breached record-keeping laws and failed to issue pay slips.


The cooks were underpaid a total of $13,081 and $7521 respectively between November, 2013 and March, 2014.

To avoid a scenario like the one above where they will have to back pay more $20 000, become a member of  HR Central. It is your first step to ensure you have become aware of the minimum standards of employment and rates of pay applicable to your industry and employees. Thanks to Fair Work Ombudsman for the story.

Michael O'Shaughnessy

Michael is a specialist in all things HR. With vast HR experience in the USA and Australia, Michael brings a wealth of knowledge and advice to HR Central. When he's not blogging for HR Central you can find him out for dinner in one of Melbourne's newest restaurants.

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