$68,970: Supermarket operators ordered to back-pay underpaid migrant worker

Operators also handed nearly $48,000 worth of penalties

$68,970: Supermarket operators ordered to back-pay underpaid migrant worker

The operators of a supermarket in Darwin have been ordered to fully back-pay a migrant worker that they underpaid for 18 months.

The Federal Circuit and Family Court ordered Om Shiva Foods, trading as Wulagi Supermarket, to fully rectify its $68,970 underpayment of the employee, which has only been partially rectified to date.

The migrant worker, an Indian national on a temporary graduate visa, was employed between February 2020 and August 2021 as a casual retail assistant.

The Fair Work Inspector believed that the worker was underpaid minimum wages, penalty and overtime rates for working weekends and public holidays, owed under the General Retail Industry Awards 2010 and 2020.

Fair Work Ombudsman Anna Booth said the underpayment in this case was "significant."

"More than $68,000 across 18 months," she said in a statement. "It is disappointing that we have had to litigate to secure orders for the full back-pay."

Penalties for underpayment

In addition to back-pay orders, Judge Anastasis Liveris further imposed a $39,960 penalty against Om Shiva Foods and a $7,992 penalty against its sole director, Vinay Madasu, for his involvement in the contraventions.

The penalties were imposed after the operators failed to comply with the Compliance Notice issued by the Fair Work Inspector and for failing to issue the worker pay slips.

"In my view, there is a need for general deterrence and a need to ensure that there is compliance with minimum standards by the provision of an effective means for investigation and enforcement of employee entitlements and loss," Liveris said.

"There is a need for small businesses in the supermarket and grocery industry to appreciate the seriousness of their obligations to comply with compliance notices and their record keeping obligations."

Meanwhile, Booth reiterated the FWO's warning to employers that those who fail to act on Compliance Notices may face penalties on top of back-pay orders.

"When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties and back-pay orders," she said.

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