21 Oct 2023
The Fair Work Ombudsman (FWO) has successfully obtained penalties totalling $558,190 against Winit (AU) Trade Pty Ltd, a Hong Kong-owned Sydney-based company, for its systemic underpayment of nearly 400 migrant employees. Justice John Snaden expressed strong disapproval of the company’s actions, describing them as “deliberate and systematic” and “obnoxious.”
Background The Federal Court handed a $550,000 penalty to Winit (AU) Trade Pty Ltd, which offers warehousing and distribution services for online sales, including those on eBay. Additionally, Song Cheng, the sole director and general manager during the contraventions, is penalized $8,190. The misconduct spanned from 2014 to 2019, with underpayments reaching over $3.6 million.
Legal Action The litigation initiated by the FWO focused on 30 migrant employees underpaid by $368,684 between July 2017 and June 2018, as per the Services and Wholesale Award 2010. Of these, three underpayment contraventions were classified as ‘serious contraventions’ under the Protecting Vulnerable Workers laws, leading to enhanced penalties.
Employee Background and Treatment The affected employees, primarily young Taiwanese on working-holiday visas, were made to work up to 70 hours weekly over almost seven days. They were inadequately paid a flat rate of $24.41 per hour without due penalty or overtime.
Winit also failed to adhere to laws related to pay slips, provision of Fair Work Information Statements to new hires, and other Award obligations.
Adverse Actions Two employees faced reduced shifts after declining a settlement offer from Winit, which proposed to pay just a quarter of their due entitlements.
Underpayments for these 30 employees during the mentioned period ranged from $446 to $28,202. Nineteen of these individuals were underpaid by over $10,000.
All affected employees have now been compensated. An external audit resulted in the majority of previously underpaid employees from 2014 to 2019 also receiving their dues.
Remarks Justice Snaden highlighted the company's troubling behavior, especially its attempts to negotiate a financial compromise rather than address its mistakes, and the retaliatory actions taken against employees who resisted.
The case serves as a stern reminder for employers to honour Award and statutory obligations, ensuring all workers, irrespective of nationality or visa status, receive lawful minimum rates.
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