Crystal Carwash Cafe: Exploitation of Vulnerable Workers [2014] FCA 827
Friday 8 August 2014 @ 9.42 a.m. | Industrial Law
In the Federal Court on Thursday, 7 August 2014, Justice Robert Buchanan found that Crystal Car Wash short-changed more than 350 employees, mostly young workers from non-English-speaking backgrounds, in the case of Fair Work Ombudsman v Crystal Carwash Cafe Pty Ltd (No 2)[2014] FCA 827.
Facts of the Case
The facts are that Crystal CarWash Cafe contravened the Vehicle Manufacturing, Repair, Services and Retail Award 2010 by not paying its employees minimum rates of pay or overtime entitlements under the Award and that it failed to maintain proper records with respect to employee overtime. The allegations concerning the underpayment contraventions were that from the period 1 January 2010 to 18 September 2010 a significant number of the 359 employees employed by the first respondent were paid less than the applicable award wages and/or not paid overtime entitlements.
Many of the employees were paid a flat rate of $13 an hour, leading to significant underpayment for overtime work, for which they were entitled to receive more than $21 an hour, as well as underpayment of their minimum hourly rate. The underpayments, totalling $177,000, have since been rectified but only after Fair Work inspectors had begun to investigate.
Findings of the Court
Justice Buchanan fined Crystal Carwash Cafe Pty Ltd, which operates outlets at Bondi, Brookvale, Chatswood, Coogee, Gladesville, Merrylands, Mosman, Northbridge, Rose Bay, Rushcutters Bay and Strathfield, a total of $70,000. The company’s director and part-owner Anthony Sahade has been penalised a further $10,000. Justice Buchanan also imposed a $10,000 fine against Peter Khouri, who was responsible for the company’s payroll and administrative functions.
The Court found the two had “direct and major responsibility” for the underpayment and there had been no remorse for their “deliberate and calculated” conduct.
TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.
Sources:
Fair Work Ombudsman v Crystal Carwash Cafe Pty Ltd (No 2) [2014] FCA 827 as reproduced in TimeBase LawOne Caselink
