Importer loses out after underpaying driver

A DANDENONG-based grocery importer must pay a $128,700 fine for negligently underpaying a “vulnerable” delivery truck driver.
The Federal Circuit Court issued the penalty to Lay Brothers (Wholesale) Pty Ltd and ordered the business to pay $124,816 in back-pay to the worker.
The East Timorese immigrant aged in his 40s speaks English as a second language, and lodged a complaint with the Fair Work Ombudsman after he was underpaid while employed as a delivery truck driver.
Lay Brothers paid him flat hourly rates of between $10 and $11.50 between 2007 and 2011, despite him often working more than 60 hours a week and weekends.
He was entitled to at least $14 to $16 for normal work hours and more than $20 an hour for overtime and weekends.
In imposing the penalty, Judge Frank Turner said withholding such a large amount of pay from a vulnerable employee was a serious offence.
“(The employee) was a cousin of the respondent’s managing director – he was entitled to trust him – that trust was breached to a very serious extent,” he said.
“There is no proof that the underpayments were deliberate, but at best they must have resulted from a failure by the respondent to inquire about the correct entitlements, therefore they resulted from negligence.
“Ignorance of the law is no excuse. An employer must ascertain the correct entitlements and accord them.”
Fair Work Ombudsman Natalie James said the court’s decision sent a message that underpaying vulnerable employees would not be tolerated.
“We will not hesitate to take action to protect the workplace entitlements of vulnerable workers in the community,” she said.
“Successful prosecutions such as this also benefit employers who are complying with workplace laws because it helps them to compete on a level playing field.”
Employers and employees seeking assistance should visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94.
A free interpreter service is available on 13 14 50.