The franchisees of a Gloria Jean’s outlet in Melbourne are to face court after allegedly underpaying 22 employees, many of which were international students and one-third of them aged under 21, more than $83,000. 

Facing court is Primeage Pty Ltd, which operates a Gloria Jeans franchise in the Melbourne suburb of Caulfield, and company directors Tsinam Fu, of Clayton and Ping Ostrovskih, of Rowville.

The Fair Work Ombudsman alleges the employees were paid a flat rate of $8 to $10 an hour, which if proved in court would mean they were underpaid their minimum hourly rates, weekend and public holiday rates, casual loadings, minimum shift pay and a clothing allowance.

Breaches of laws relating to issuing of pay slips, providing meal breaks and keeping employment records are also being alleged.

Individual amounts owing to employees reportedly range from $45 to $17,103.

The Fair Work Ombudsman became aware of the alleged working conditions after following up a complaint lodged by one of the employees.

Fu and Ostroyskih face maximum penalties from $3,300 to $10,200 per breach and Primeage Pty Ltd faces penalties ranging from $16,500 to $51,000 per breach.

The Fair Work Ombudsman is seeking a Court Order for the company to rectify the underpayments in full.

Fair Work Ombudsman Natalie James said the involvement of vulnerable workers was a significant factor in the decision to put the matter into court.

“We seek to guard against employer practices that deliberately take advantage of language difficulties, lack of knowledge of the law, unfamiliarity with government agencies and dependency created by the significant power imbalance when an overseas worker is reliant on the employer signing paperwork,” she said.

A directions hearing is scheduled for 7 April.