In a ruling that underlines the Fair Work Ombudsman's pursuit of accessorial liability against advisors, a court has for the first time imposed a fine on an accountancy firm involved in an employer's underpayments.
In the FWO's first underpayment prosecution relying on race discrimination prohibitions in the Fair Work Act, a court has found a Tasmanian hotel and its manager deliberately short-changed a head chef and kitchen hand and expected them to work long hours, six days a week because of their Malaysian nationality and Chinese race.
The HSU says it is unlikely to pursue former national secretary and ex-Labor MP Craig Thomson for the repayment of about $378,000 because it would incur further legal costs with little chance of recovering the money.
Fair Work Ombudsman Natalie James says low penalties are creating a "perverse incentive" for a "dangerous minority" of employers to use inaccurate or incomplete records to conceal underpayments, forcing the watchdog to use novel, labour-intensive strategies to piece together employees' working hours.
Fast food giant Pizza Hut has underpaid some of its delivery drivers, offering as little as $5.70 per delivery, with 92% of franchisees audited by the FWO failing to meet their legal obligations to employees, a report by the regulator has found.
The FWO has used accessorial liability provisions to secure substantial penalties across the chain of command of a frozen yoghurt franchise responsible for underpaying four overseas workers.
A director who appears to be operating a "phoenix" labour hire company and his former HR manager have been penalised $25,000 for their knowing involvement in unlawfully deducting $130,000 from the wages of 102 Crown Casino and Federation Square cleaners and providing false records to the FWO.
