Court action over alleged $28,000 underpayment of retail workers

The Fair Work Ombudsman is prosecuting retail company Lycamobile, alleging it underpaid 13 employees in Adelaide and Brisbane, including many foreign workers, more than $28,000 between February and September 2011.

Twelve of the workers were foreign nationals who were employed to promote and sell pre-paid mobile phone SIM cards and top-up vouchers. Several of the workers were in Australia on student, working holiday and other types of visas. One employee performed administration duties.

It is alleged that the employees, who ranged in age from 19 to 36 and were variously employed on a full-time or casual basis, were generally paid flat rates of $15 an hour. This led to underpayment of their minimum hourly rates and penalty rates for weekend, public holiday, evening and overtime work. Employees were also variously underpaid casual loadings, wages in lieu of notice and annual leave entitlements.

Alleged underpayments of individual employees range from $32 to $6869.

Fair Work inspectors discovered the underpayments when they investigated complaints lodged by employees. The underpayments were rectified after the Fair Work Ombudsman commenced its investigation.

Acting Fair Work Ombudsman Mark Scully says the decision to prosecute was made because of the significant amount involved for many vulnerable employees.

Lycamobile allegedly committed several breaches of workplace laws. The company faces maximum penalties of $33,000 per breach. A directions hearing is listed in the Federal Magistrates Court in Brisbane on 5 September.