Penalty for pizza workers’ pay rort

A HOBART pizza outlet has been penalised $104,000 for paying migrant workers much less than their Australian counterparts.

QHA Foods Pty Ltd, the operators of the Crust Gourmet Pizza outlet in Elizabeth St, North Hobart, were penalised by the Federal Circuit Court after action by the Fair Work Ombudsman.

The company’s directors and shareholders Anandh Kumarasamy and Haridas Raghuram, were penalised an additional $12,000 each.

The Fair Work Ombudsman said the pair admitted breaches of workplace laws, including the provision of the Fair Work Act that makes it unlawful to discriminate against employees on the basis of their nationality. They also altered records in a bid to cover-up the underpayments.

The Ombudsman said three Bangladeshi nationals and one Indian national — all international students — were underpaid a total of $9926 between January and July 2016.

The workers were paid a flat hourly rate of $12, plus $1 per pizza delivery — significantly less than the hourly rates, and casual, evening, weekend and public holiday loadings they were entitled to under the Fast Food Industry Award.

They were paid cash, were required to deliver pizzas to more distant locations than their colleagues and were not provided with pay slips. Australian workers at the outlet were paid more, but were also underpaid a total of $6252. All staff have been backpaid in full.

Fair Work Ombudsman Sandra Parker said inspectors investigated after receiving a request for assistance from a migrant worker.

“Singling out migrant workers for underpayment is unacceptable conduct that will not be tolerated by us or the court,” she said.

It is the third time the Fair Work Ombudsman has taken legal action against the operators of a Crust outlet.

Last year, the Ombudsman took legal action against a Melbourne franchise alleging $35,725 in underpayments. This matter is before the Federal Circuit Court. In 2015, it secured a penalty of $3825 against the former operator of a Crust outlet at Maroubra, in Sydney, for refusing to reimburse eight employees who were underpaid almost $26,000.