Fair Work Infoline: 13 13 94
Media Release
22 Jan 2010
Darwin fast food outlet fined $22,200 for
underpaying young worker
The operator of a Darwin take-away food outlet has been fined $22,200 for
underpaying a young worker almost $25,000.
Fortcrest Investments Pty Ltd, which owns and operates Lips Café at the Oasis
Shopping Centre, Palmerston, received the fine in the Federal Magistrates Court
in Darwin.
Federal Magistrate Janet Terry imposed the fine after Fortcrest Investments
admitted breaching workplace laws by underpaying a casual food service
employee a total of $24,526 between 2003 and 2008 when she was aged
between 20 and 25.
Fortcrest Investments underpaid the employee’s minimum hourly rate and failed
to pay her a district allowance she was entitled to.
The company also admitted breaching workplace laws by failing to issue the
employee payslips and failing to keep proper superannuation records.
The Fair Work Ombudsman discovered the breaches when it investigated a
complaint the employee lodged via the internet in March, 2008.
Fair Work inspectors negotiated for the company to back-pay the worker all
money she was owed in September, 2008.
In her judgment, Federal Magistrate Terry criticised the director and manager of
Fortcrest Investments, who were East Timorese refugees, for determining the
wage rate they would pay the employee by talking to other shop owners.
Federal Magistrate Terry said it was “reckless in the extreme of the director and
manager of the respondent, in circumstances where they had never run a
business before and intended to set up business in a country with whose laws
they were not familiar, to fail to make any inquiries with any relevant authorities
about their obligations concerning paying employees and their record keeping
obligations.”
“Many immigrants to Australia set up small businesses here and it is important
that a penalty be imposed significant to deter other people in the director and
manager’s circumstances from acting in the same reckless fashion by failing to
make any inquiries about their obligations as employers,” Federal Magistrate
Terry said.
“It is important that it be reinforced to all small business operators that they have
an obligation to meet minimum requirements concerning pay and record keeping
and cannot simple determine for themselves the amount they will pay or the
records they will keep.”
… 2
Fair Work Infoline: 13 13 94
2
Fair Work Ombudsman Executive Director Michael Campbell says the Court has
sent a strong message to employers that ignorance of workplace laws is no
excuse for underpaying staff and encouraged businesses unsure of their
obligations to contact his Agency for advice and assistance.
“The Fair Work Ombudsman has a range of experts and other resources available
to help employers quickly and easily determine things such as the correct Award,
classification and pay rates that apply to their employees,” he said.
“While it is ultimately the employer’s responsibility to ensure they keep up to date
with this information, we are here to help them do that.”
Employers or employees seeking assistance should contact the Fair Work Infoline
The Fair Work Ombudsman promotes harmonious, productive and co-operative
workplaces. It also monitors compliance and investigates breaches of national
workplace laws.
Media inquiries:
Craig Bildstien, Director Media & Stakeholder Relations. 0419 818 484.
craig.bildstien@fwo.gov.au
Ryan Pedler, Senior Adviser Media & Stakeholder Relations. (03) 9954
2561, 0434 365 924. ryan.pedler@fwo.gov.au
NEWS 
