Employers fined for breach of workplace laws
A number of employers across Australia had hefty penalties handed to them for various breaches of workplace laws throughout 2011.
In March 2011, a Brisbane company and its director were fined $214,500 over sham contracting and underpayments affecting more than 100 call centre workers. The workers were classified as 'independent contractors' when they were actually 'employees'.
In April 2011, the former operators of two Victorian convenience stores were fined a total of $150,000 for deliberately exploiting six international students and an order was made for restoration of almost $90,000 in underpayments of wages.
In May 2011, the sole director of a former Canberra recycling company was fined $72,000 for his involvement in underpaying 10 workers more than $250,000 between 2004 and 2008, and unlawfully sacking three of them for complaining. The court found that director had been 'willfully blind' to his responsibilities as an employer and said the underpayment related conduct 'must be sheeted home' to him.
In May 2011, a Western Australian construction company which recruited tradesmen from China and paid them less than $3 an hour was fined $123,000, and ordered to back pay wages of $242,000, with interest of about $65 000. The director of the company was fined a further $24,600.
In September 2011, a Queensland company was fined $25,000 for breaches of the Fair Work Act that related to Award Flexibility Agreements. The Managing Director of the company was also personally fined $5,000. This is despite the Court having the power to impose a maximum fine of $99,000 for the company, and $19,800 for the Director. The level of fines imposed demonstrates the importance of strictly complying with the law in relation to Award Flexibility Agreements.
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