Migrant workers underpaid by more than $131,000: FWO
A New South Wales and ACT retailer has been hit with a total of $5,146,100 in penalties after exploiting migrant workers and obstructing investigations by the Fair Work Ombudsman (FWO).
The Federal Court imposed a $4,299,000 fine on Blue Sky Kids Land Pty Ltd, which operated children's clothing stores across Sydney, the Central Coast of New South Wales, Newcastle, and Canberra.
Additionally, penalties were also handed down to company directors: $760,000 to Guo Dong Gu, $43,000 to Fei Rong Yang, and $44,100 to Q Fay Trading Pty Ltd, a company previously run by the directors.
Justice Anna Katzmann noted that the company's breaches were "deliberate and serious," with some occurring despite previous warnings from Fair Work Inspectors dating back to 2006.
"What is more, the contraventions occurred in circumstances in which the respondents either knew or were wilfully blind to their legal obligations," Katzmann said as quoted by the FWO.
She also highlighted the need for deterrence, particularly in light of the ongoing role of Gu and Yang in retail operations even as the case was in progress.
The penalties stem from a series of workplace law violations, including underpayments amounting to $131,920 owed to four Chinese migrant workers employed between October 2015 and June 2018.
The workers, aged in their 40s and with limited English proficiency, were paid as little as $10 an hour for retail roles at Blue Sky Kids Land stores.
The penalties were also triggered by Blue Sky Kids Land's obstruction of Fair Work Inspectors during investigations. The company attempted to evade scrutiny by shutting down a Canberra store to prevent inspectors from conducting a site visit and instructing staff to delete timesheets.
In addition to underpaying wages, Blue Sky Kids Land violated laws related to record-keeping, issuing pay slips, and failing to pay workers' superannuation.
Two workers were denied overtime pay, and one did not receive the appropriate compensation for annual leave or notice at the end of employment.
Fair Work Ombudsman Anna Booth said the severity of the breaches, especially involving vulnerable migrant workers, underlined the serious nature of the case.
"These substantial penalties highlight that exploiting vulnerable migrant workers is particularly reprehensible conduct that will not be tolerated in Australia," she said in a statement.
"We treat cases involving underpayments and use of false or misleading records impacting migrant workers particularly seriously, because we are conscious that they can be vulnerable due to factors such as a lack of awareness of their entitlements or a reluctance to complain," Booth said.
The case marks the third-highest penalty secured by the FWO, with only the $13.7 million in the Sushi Bay case and $10.3 million in the Commonwealth Bank and CommSec case surpassing it.
