A Geelong cafe allegedly underpaid young workers more than $15,000 and provided false records to inspectors, according to the Fair Work Ombudsman (FWO).
The operator behind a Coffee Club outlet in Geelong’s Westfield Shopping Centre is set to face court after the FWO revealed today it launched legal action against the business.
Operator JMSL Pty Ltd and owner Edison Peng allegedly underpaid two employees a total of almost $15,412 over several months in 2016 to 2018.
One of the workers, aged 19 to 20, was underpaid $12,910 between May 2016 to August 2017 and the other, aged 20, was underpaid $2,502 over a three-month period in 2018, the FWO alleged.
The employees were allegedly paid flat rates as low as $15 an hour, resulting in underpayment of minimum hourly rates, casual loadings and weekend and public holiday penalty rates.
Inspectors investigated the alleged underpayments after the two workers contacted the FWO for help, the FWO said.
“The alleged payment of low, flat rates that undercut award entitlements is completely unacceptable conduct and we treat underpayment of young workers particularly seriously,” FWO’s Sandra Parker said.
Mr Peng also gave the ombudsman’s office false and misleading records and payslips that overstated the rates the two employees were paid, the FWO alleged.
“Employers should be aware that the Fair Work Ombudsman takes allegations of false and misleading records extremely seriously,” Ms Parker said.
Mr Peng faces penalties of up to $12,600 for each contravention and JMSL Pty Ltd up to $63,000 for each contravention, the FWO said.
The ombudsman was seeking court orders requiring Mr Peng and his company to back-pay the employees in full.
A directions hearing is scheduled for the Federal Circuit Court in Melbourne on 12 November.
