The penalties were imposed in response to the four companies underpaying the workers a total of $24,134 during periods in January 2018 and between July and October 2018. At the time of the breaches, one worker was 17 years old and four other workers were visa holders.
Fair Work Ombudsman Sandra Parker said employers that underpaid vulnerable workers including young workers and visa holders would continue to risk facing court action.
“We continue to prioritise the protection of vulnerable workers, who we know can be at particular risk of exploitation, and that includes pursuing penalties in court against employers who fail to meet their workers’ rights,” Ms Parker said.
“All workers have the same basic rights in Australia, regardless of age or visa status, and anyone with concerns about their pay or entitlements should contact the FWO for free assistance.”
The four companies back-paid the workers only after the Fair Work Ombudsman investigated.
In imposing the penalties, Deputy Chief Judge Patrizia Mercuri noted that “employers have a particular responsibility in relation to vulnerable employees to ensure that their rights are respected.”
Her Honour found that the ultimate rectification of the underpayments “does not displace the loss suffered by the employees who did not have access to their wages and other employment entitlements in a timely manner.”
Her Honour found that there was a need to impose penalties to deter other employers in the laundry industry from similar conduct.
The regulator investigated the Cairns-based company as part of its Workplace Basics Campaign in 2018 and expanded its investigation to cover multiple companies after receiving anonymous reports.
The affected workers all performed laundry work and were employed in full-time, part-time, and casual positions.
The underpayments relate to the failure of the companies based in Sydney and Melbourne to pay overtime penalties to shift workers and who either did not pay or underpaid shift work and weekend penalties.
The Federal Circuit and Family Court has imposed a:
- $54,000 penalty against Specialised Linen Services (Sydney) Pty Ltd of Bankstown, NSW
- $10,000 penalty against Specialised Linen Services (Adelaide) Pty Ltd of Torrensville, South Australia
- $14,000 penalty against Specialised Linen Services (Cairns) Pty Ltd of Portsmith and Paget, Queensland
- $12,000 penalty against Specialised Linen Services (Melbourne) Pty Ltd of Broadmeadows, Victoria
