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Former IGA operator allegedly underpaid employees $11,373

Sarah Stowe

Melbourne-based owner reportedly short changed six workers a total of $11,373.

The Fair Work Ombudsman (FWO) has commenced legal action against a former IGA supermarket operator in Melbourne, alleging he underpaid employees as young as 19 and used false records to give to the FWO, despite being previously put on notice of his obligations to correctly pay employees and keep records.

Facing the Federal Circuit Court is Said “Sam” Haddad, who is the operator and majority owner of the Fairfield IGA supermarket and was formerly the majority owner and operator of the Altona IGA supermarket.

Also facing Court in relation to the alleged conduct are two companies Haddad is a director of, Hadya Nominees Pty and Deja Vu Elite Security Pty Ltd.

The FWO alleges six employees at the two IGA supermarkets were underpaid a total of $11,373 between November, 2013 and November, 2015. Documents filed in court claim the employees were paid flat rates ranging from $15 to of $20 an hour.

A spokesperson from Metcash, the company which owns IGA, told Inside Franchise Business that Haddad “is no longer with IGA” but did not comment further.

However, the FWO is also seeking Court Orders requiring a workplace notice detailing employee entitlements to be displayed at the Fairfield IGA and other stores covered by the General Retail Industry Award operated by Deja Vu Elite Security Pty Ltd or Haddad, and an injunction restraining Haddad from being involved in underpaying workers in future.

If the injunction is granted, he could face contempt of court proceedings for any further underpayment contraventions proven in court.

He also faces maximum penalties of up to $10,800 per contravention. Hadya Nominees Pty and Deja Vu Elite Security Pty Ltd face penalties of up to $51,000 and $54,000 per contravention respectively for a number of alleged contraventions of the Fair Work Act.

In addition to the penalties, the Fair Work Ombudsman is seeking Court Orders requiring Haddad and Hadya Nominees to make back-payments to two workers who have allegedly not been back-paid. The other four workers have been back-paid.

IGA, an independent grocery chain, has over 1400 stores Australia wide.