Fair Work Infoline: 13 13 94
Media Release
15 Jan 2010
National toy retailer faces court over alleged
underpayment of hundreds of young workers
The Fair Work Ombudsman has launched a prosecution against retail giant
Toys“R”Us, alleging the company failed to promptly compensate more than 700
staff – many of them teenagers – who had been underpaid.
Documents lodged in the Federal Magistrates Court in Sydney allege that
Toys“R”Us failed to compensate the underpaid workers within the time frame
required under workplace laws.
It is alleged that hundreds of the company’s workplace agreements were invalid
because they failed either the Fairness test or No Disadvantage test.
The Fair Work Ombudsman claims that insufficient pay rates contained in the
invalid workplace agreements resulted in Toys“R”Us underpaying more than 700
employees for various periods between 2007 and 2009.
The alleged underpayments were of entitlements including the minimum casual
hourly rate and penalty rates for weekend, public holiday and night shifts.
The Fair Work Ombudsman alleges that Toys“R”Us failed to back-pay the
underpaid workers within the required timeframe, despite repeated demands.
It finally did so in March, 2009 – reimbursing its workers a total of $445,000.
Some had waited up to nine months to receive their outstanding entitlements.
Toys“R”Us staff who were allegedly underpaid worked at the following stores:
Western Australia - Cannington, Joondalup and Morley
South Australia - Tea Tree Gully, Noarlunga and Rundle Mall
ACT - Belconnen and Canberra Airport
Victoria - Wantirna South, Maribyrnong, Chadstone, East Preston, Geelong
and Frankston, and
NSW - Parramatta, Chatswood, Kotara, Moore Park, Penrith, Bankstown,
Miranda, Castle Hill, Liverpool, Campbelltown, Hurstville and Erina.
Most were engaged on a casual basis and were under the age of 25, including
many under the age of 18.
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Fair Work Infoline: 13 13 94
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The Fair Work Ombudsman also alleges that Toys“R”Us failed to follow correct
procedures when lodging many of its workplace agreements.
A number of agreements were allegedly non-compliant with one or more matters
relating to how they had to be signed, approved by the employer and employee,
dated, witnessed and lodged.
Acting Fair Work Ombudsman Natalie James says the decision to prosecute the
company was made because of the significant amount involved and the
company’s extensive failure to meet its obligations.
“Underpaying young workers is a particularly serious matter,” she said.
The Fair Work Ombudsman alleges Toys“R”Us committed more than 20
contraventions of workplace laws. It faces a maximum penalty of $33,000 per
breach.
The case is listed for a directions hearing on February 1.
The Fair Work Ombudsman promotes harmonious, productive and co-operative
workplaces. It also monitors compliance and investigates breaches of national
workplace laws.
Employers or employees seeking assistance should contact the Fair Work Infoline
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 
