Fair Work Infoline: 13 13 94
Media Release
22 Oct 2010
Court imposes fines for underpayment of fruit
and vegetable store workers
The operators of fruit and vegetable stores in Wagga and Sydney have been
fined almost $90,000 for underpaying 40 of their workers.
The penalties were handed down in the Federal Magistrates Court in Sydney
yesterday following a prosecution by the Fair Work Ombudsman.
The Fair Work Ombudsman told the Court that 20 shop assistants at the former
Fruit World and Fruit Market stores on Baylis Street in Wagga were underpaid a
total of $84,000 and 20 shop assistants at the Roselands Shopping Centre in
Sydney were underpaid about $10,000.
Roselands Fruit Market Pty Ltd was fined $70,800 and Joe Aloisio, who managed
the Wagga stores at the time of the underpayments, a further $16,650.
The company underpaid the workers between 2006 and 2009 when it was
operating the stores.
Handing down his decision yesterday, Federal Magistrate Rolf Driver said
Roselands Fruit Market continued to underpay employees for a significant period
of time even after Fair Work inspectors alerted the company to the issue.
Federal Magistrate Driver said employers in a similar position are put on notice
that a failure by them to meet their obligations to employees will have substantial
consequences.
The employees were paid a flat rate for all hours worked, resulting in
underpayment of their minimum hourly rate, weekend and public holiday penalty
rates, casual loadings and annual leave entitlements.
Five of the underpaid Wagga employees and seven of the underpaid Sydney
employees were aged under 21.
The Fair Work Ombudsman started investigating Roselands Fruit Market Pty Ltd in
2008 after receiving complaints from workers.
The company has back-paid all money owed. The biggest individual
underpayment was $15,820 for a Wagga based employee.
Fair Work Ombudsman Executive Director Mike Campbell says the penalty sends
a strong message to employers that underpayment of young, low-paid workers
will not be tolerated by the courts.
Successful prosecutions such as this also benefit employers who are complying
with workplace laws because it helps them to compete on a level playing field,
he said.
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Fair Work Infoline: 13 13 94
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Roselands Fruit Market continues to operate the Roselands store but the Wagga
stores on Baylis Street are no longer trading.
Employers or employees seeking assistance should contact the Fair Work Infoline
The Fair Work Ombudsman has a number of tools on its website to assist
employees and employers to check minimum rates of pay.
Small to medium-sized businesses without human resources staff can also ensure
they are better equipped when hiring, managing and dismissing employees by
using free template employment documentation with step-by-step instructions or
accessing a series of Best Practice Guides.
The Industries section on the Fair Work Ombudsmans website provides
information specifically tailored for employers and workers in the retail, cleaning,
clerical, hair and beauty, security and horticulture industries.
Media inquiries:
Ryan Pedler, Senior Adviser Media & Stakeholder Relations. (03) 9954
2561, 0411 430 902. ryan.pedler@fwo.gov.au