The former operators of a Perth cafe have been slugged with $193,000 in fines after the Federal Circuit and Family Court found company leaders falsified pay slips, provided the Fair Work Ombudsman (FWO) with doctored wage documents, and warned staff against speaking up.
On Monday, the FWO said it successfully secured major penalties against Quickpoint Pty Ltd, and its sole director, Augustine Lawrence Chia, in relation to an investigation of wage underpayment claims at Japanese cafe Shimizu Harbour Town.
The FWO launched an investigation in 2020 after receiving an anonymous report of wage underpayment, and served Quickpoint with a notice to produce documents related to the claim.
On two separate occasions, Quickpoint handed inspectors documents claiming two Shimizu Harbour Town employees were paid more than they actually were.
Chia also pressured two employees to tell Fair Work they had earned award rates far above their actual take-home pay of between $15 and $16 an hour, the FWO said.
The FWO said Chia pushed employees to stay silent in a letter, writing: “Anything you say about me or the company about not paying according to award wage can lead to a heavy fine and closing of this business,” adding that, “if you say the wrong thing we all will be out of a job.”
“Don’t sell me out,” Chia said to one employee.
In his November 29 ruling, Judge Christopher Kendall wrote Quickpoint and Chia “showed a blatant and serious disregard for their record keeping obligations and the need to engage honestly” with the employees.
The production of false documents for Fair Work investigators was also “a result of their gross disregard” towards the workplace regulator, he added.
For that conduct, the Federal Circuit and Family Court imposed a $168,415 fine against Quickpoint, and a $24,580 penalty against Chia.
Those penalties fall short of the maximum amount prescribed by the law; as Chia admitted to those breaches, the court recognised the respondents’ “contrition and cooperation” in the case.
However, the size of the penalty remained important, as the court was “focused on imposing a penalty that will deter other companies from similar contravening conduct in the future”.
“Context matters and to characterise the conduct relevant to the contraventions in this matter as being ‘serious’ is, frankly, an understatement given the relevant context here,” Justice Kendall wrote.
“It is particularly important that the penalties serve as a deterrent to others in the hospitality industry as it is an industry notorious for underpayment to staff,” he added.
The FWO did not seek penalties for underpayment in and of itself, noting that Quickpoint had already made back payments to employees.
Australian fast-food businesses, restaurants, and cafes can view their obligations at the Fair Work website.
Both employers and employees can call the Fair Work Infoline on 13 13 94 for advice about their working conditions.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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