Senan Pty Ltd, the former operator of a Gloria Jean’s franchise in Sydney’s Kings Cross, has paid $2000 compensation to a casual employee who was dismissed after she queried her pay rate.
In early June last year, the employee asked Senan director Elaine (Lie Ming) Zhou if the flat rate of $12 an hour she was being paid irrespective of the day or time or day worked was correct.
Two days later, Zhou cancelled the employee’s next rostered shift and later sent her an email terminating her employment.
The 26-year-old, who is residing in Australia on a skilled graduate visa, proceeded to contact the Fair Work Ombudsman, which went on to investigate the employee’s case, as well as the wages and conditions of other Senan staff.
Investigations uncovered Senan contravened the Fair Work Act when it cancelled the employee’s rostered shift and dismissed her for querying her employment conditions.
In addition, the Fair Work Ombudsman found another 15 other staff had been underpaid more than $16,000 between June 2011 and July 2013 – including one employee who was owed $8200.
The staff, which included six young workers aged between 17 and 20 and three foreign workers in Australia on Visas, were underpaid:
- Their minimum rate of pay
- Casual loadings
- Weekend penalty rates
- Payment of accrued entitlements on termination
Senan had also breached workplace laws by failing to keep proper employment records.
The $2000 compensation payment forms part of an Enforceable Undertaking Senan and Zhou have entered into with the Fair Work Ombudsman as an alternative to litigation.
The EU also requires the company:
- Issue a written apology to all affected employees offering its “sincere regret”
- Commit to a number of measures to ensure its future compliance with Commonwealth workplace laws
- Zhou is required to undertake workplace relations training on the rights and responsibilities of employers under the Fair Work Act, particularly in relation to discrimination in the workforce
According to Fair Work Ombudsman Natalie James, the maximum court penalty for taking adverse action against an employee who asks about their pay rates or other working conditions is $10,200 for an individual and $51,000 for a company.
She said the Senan case should serve as a reminder to all employers, big and small, that employees have a lawful right to question their workplace entitlements.
“We will take a dim view of employers who show the door to staff simply because they asked about their pay rates.
“But we don’t insist there is only one way to achieve compliance with workplace laws – education, positive motivators and deterrents are all important,” she added.