FWO: Company also provided falsified documents, failed to keep proper records
A Victorian grower and one of its directors have been fined nearly $160,000 for several employment breaches, including underpaying two employees.
Lotus Farm Pty Ltd received a fine of $130,806, while one of its directors, Son Thai, got a $28,987 fine, according to the Fair Work Ombudsman.
The penalties came after Lotus Farm confessed that it underpaid one of its workers a total of $22,364, while the other was underpaid $6,167 between June 2017 and September 2020.
The underpayment includes the employees' minimum rates of pay, casual loading, overtime, and public holiday penalty rates as set out in the Horticulture Industry Award 2010, according to the FWO.
In addition to underpaying staff , the FWO said Lotus Farm provided false or misleading payslips during investigation to hide the underpayments. The company also didn't give the employees payslips and failed to make and keep records as required.
Thai admitted that he was involved in the underpayments of the two employees, who were both from non-English speaking backgrounds, and on other violations committed by Lotus Farm.
‘Substantial penalties’ for underpayments
Deputy Chief Judge Patrizia Mercuri considered these "particularly serious" offences in deciding the penalties for Lotus Farm and Thai.
"The provision of misleading information was clearly a deliberate act and had the potential to derail and or extend the investigation," Mercuri said.
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According to the FWO, the company has rectified the underpayments in full and implemented measures to minimise non-compliance in the future.
However, Mercuri noted that the penalties had to reflect the court's "strong disapproval" over the contraventions.
"This is particularly so given the nature of the industry and the vulnerability of the affected employees," she said.
Michael Campbell, acting Fair Work Ombudsman, welcomed the penalties against the parties, underscoring that they do not tolerate exploitation against migrant workers.
"These substantial penalties against Lotus Farm and its general manager send a clear message that those who attempt to cover up significant underpayments, including with false payslips, will be found out and face costly consequences," Campbell said in a statement.