Migrant worker in Brisbane underpaid $5,000

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Created on Tuesday, 13 March 2012 12:20

Written by Editorial staff

An inner-city eatery in Brisbane and its manager are being taken to court by the Fair Work ombudsman after it was found that the business had been allegedly underpaying one of its foreign employees by "a significant amount".

The restaurant and one of its owners had charges brought against them after investigations found that one of the casual cooks was receiving as little as 50 per cent of their standard hourly wage.

According to official reports, the ombudsman's office began looking into the allegations after the employee in question - a Japanese national in possession of a bridging visa that allowed her to work in Australia - lodged a formal complaint with the government body.

It alleged that the worker was receiving anything between $9.25 and $11.70 per hour for shift work when the industry standard for hospitality employees of their level required a minimum rate of $18.43 an hour.

Over a six-month period, the difference between standard pay and the amounts received added up to a total of $5,355 in underpayments - a substantial amount for a casual hospitality worker employed in a foreign country.

This discrepancy in remuneration shows just how easy it can be for ill-informed migrant workers to be taken advantage of by immoral practices that prey on the uncertainty surrounding a visa holder's right to employment.

The Fair Work ombudsman, Nicholas Wilson, explained the fact that the employee in question was so vulnerable to this kind of fraudulent activity - combined with the significant monetary amount in question - necessitated the move to prosecute both the manager responsible and the business itself.

This decision was made despite the fact that the company moved to rectify the alleged discrepancy after investigators brought it to light in 2011.

Under the relevant legislation, the firms could face fines of up to $33,000 for each breach of the Fair Work guidelines, while the manager could be liable for penalties of $6,600 for each offence committed.

In total, the ombudsman's office found that the organisation may be held accountable for two infractions - bringing the possible combined total to $79,200.

While honest mistakes can occur, there is no excuse under the law for making arrangements with migration visa holders that are below the industry standard rate of pay.

This also applies to the practice of withholding holiday pay or annual leave from those who have the 457 subclass - immigration visa holders are due the same level of responsibility as permanent residents under the law.