The Federal Court has imposed over $4 million in penalties against an employer for “deceitful and unscrupulous” wage theft.

In a ruling announced last week, the Federal Court of Australia penalized a restaurant chain and two of its former officials over $4 million for systemic wage theft and falsification of records. The case, brought forward by the Fair Work Ombudsman (FWO), revealed that 17 employees were deliberately underpaid a total of $157,025.

The penalties included:

·         $1.99 million against the restaurant chain

·         $1.89 million against the third-party company that employed the workers

·         $92,232 against the former general manager

·         $105,084 against the former HR coordinator

These substantial fines serve as a stark reminder to employers and managers about their personal liability in wage theft cases. With the criminalization of wage theft, this case highlights the importance for business owners, directors, managers, and HR supervisors to ensure compliance to avoid the risk of prosecution.

To prevent unintentional wage theft, HR and payroll personnel must be well-informed and have access to support systems for both their legal requirements and the effectiveness of their salary and wage systems.

$140,000 Fine After Steel Beams Injure Truck Driver

Arrow Worldwide Pty Ltd was fined $140,000 and ordered to pay $6,936 in costs after a truck driver was severely injured by falling steel beams at their West Melbourne warehouse.

The incident occurred in May 2021 when a 1.5-tonne pack of 12-meter-long steel beams fell from a forklift-loaded semi-trailer, hitting the driver and causing a traumatic brain injury and the loss of both legs.

A WorkSafe investigation found that Arrow Worldwide failed to ensure a safe working environment by not separating pedestrians from machinery and not enforcing safety zones and inductions for transport drivers.

WorkSafe Executive Director Narelle Beer stressed the need for employers to protect all individuals in the workplace, stating that the injuries were preventable with proper safety measures.

Employers should:

1.      Implement and review safe systems of work.

2.      Prepare loading/unloading areas.

3.      Maintain traffic management plans.

4.      Establish exclusion zones.

5.      Use proper signage and barriers.

6.      Ensure effective communication.

7.      Verify transport vehicle suitability.

8.      Regularly inspect and maintain equipment.

By following these guidelines, similar incidents can be prevented.