In a landmark ruling today on franchisors' IR compliance obligations, the Federal Court has imposed a $1.44 million fine on a coffee chain for its franchisees' underpayments and record-keeping breaches.
The HR manager of a dumpling chain fined $4 million over a "deceitful and unscrupulous" payroll scam has been hit with a $100,000 penalty for her role, after the Federal Court heard a big sanction might force her to sell her share of her home.
An accountancy firm and its principal must pay penalties totalling almost $70,000 for failing to comply with FWO notices to produce documents linked to to its client's "grossly inadequate" employee record-keeping.
The Federal Court has flayed the Republic of Italy for failing to heed Australian IR laws in its local consulates and has ordered it to pay a $94,000 fine, $7500 compensation and indemnity costs to an administrative employee after it failed to pay him annual leave loading for six years, to keep records in English and to produce the records on demand.
Large corporates and universities accounted for almost two-thirds of the $509 million in unpaid wages and entitlements recovered by the FWO in 2022-23 on behalf of more than 250,000 workers, the workplace watchdog revealed today.
Underpaying employers could face fines of more than $4 million or three times the sum involved, while individuals such as directors and HR managers could face imprisonment and penalties up to $825,000 per breach under further wage theft reforms being considered by the Albanese Government.
Some Australian universities have engaged in "passive resistance" when questioned over employee underpayments and record-keeping, according to Fair Work Ombudsman Sandra Parker.
A court has fined the director of a Japanese restaurant almost $25,000 after finding that he "reverse engineered" pay records provided to the FWO and asked a shortchanged employee not to "sell me out".
A Federal Court judge has while fining a franchisor almost $500,000 for deliberately underpaying Taiwanese interns speculated that a recent High Court ruling will impel more parties to agree on penalties rather than go to trial, an "unfortunate by-product" being fewer judgments offering "yardsticks" for future cases.
The Federal Court has applied the "precautionary principle" in accepting the FWO's view on the process for calculating underpayments for 19,000 salaried Woolworths employees, while it has also indicated that jointly managing the matter with a similar Coles case "would be useful".