$228,000 penalty for business operator who thinks minimum pay rates are “just crazy”

A Melbourne business operator has been fined more than $228,000 after admitting she underpaid a vulnerable migrant employee because she thinks Australia’s minimum pay rates are “just crazy”. The Federal Circuit Court has imposed a penalty of $35,496 against businesswoman Na Xu after she admitted responsibility for underpaying the employee $19,567 over a period of just eight months.
Xu’s travel services company Grandcity (GW) Travel & Tour Pty Ltd, which operates the Grandcity Tours travel agency at Glen Waverley, was fined a further $192,840. The penalties are the result of an investigation and legal action by the Fair Work Ombudsman.
An FWO report said, its inspectors discovered the underpayment after receiving a request for assistance from a 24-year-old migrant from China.
The employee, who spoke limited English, was paid flat hourly rates of between $9 and $11 to work a casual travel consultant between January and September, 2013.
Under the General Retail Industry Award, the employee should have been paid more than $21 for normal hours, plus penalty rates for weekend and public holiday work. She was paid less than half of her total entitlements.
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