The Fair Work Ombudsman (FWO) has commenced legal action against Brisbane-based franchisee Saandeep Chokhani, who, with his wife, owns and runs the Coffee Club at the Nundah Village Shopping Centre.
Also facing Court is a company Chokhani and his wife are the directors of, Gaura Nitai Pty Ltd.
The allegedly underpaid worker is an Indian national in his late 20s who was sponsored by Gaura Nitai to work as a cook at the Coffee Club outlet on a 457 skilled worker visa.
The worker was reportedly promised an annual salary of $53,900 when he was recruited.
It is also alleged that after failing to pay the worker any wages for a four-month period from July-to-November 2014 and a one-month period in February-March 2015, Chokhani and Gaura Nitai paid the worker $19,334 by electronic transfer on 22 April 2015.
Chokhani reportedly then told the worker to withdraw $18,000 in cash and repay it to him or his 457 visa would be cancelled.
In total, it is alleged that the underpayment and cash-back led to the worker being short-changed a total of $23,546 between September, 2013 and November, 2015.
Franchisor on board
FWO Natalie James said the agency has a proactive compliance deed in place with the The Coffee Club franchisor, Minor DKL Food Group (MDKL) and commended the company’s cooperation through the course of the investigation.
“We are pleased that in this instance, the franchise owner presented our inspectors with documents to assist our investigation. It should be noted that we received these documents without the need to issue a Notice to Produce. MDKL is to be commended for its approach to ensuring compliance in its network,” she said.
The worker has now been back-paid in full.
Chokhani faces maximum penalties of up to $10,800 per contravention and Gaura Nitai Pty Ltd faces penalties of up to $54,000 per contravention.
A spokesperson for MDKL said, “We can’t comment on an ongoing legal matter other than to say that the franchisee has complied fully with the FWO throughout the investigation, and The Coffee Club has been commended for its approach to ensuring compliance.
“Ownership of the store concerned will also change by the end of this month, with Chokhani having no further involvement with The Coffee Club.”
A penalty hearing is scheduled for the Federal Circuit Court in Brisbane on 2nd June.