A retail shop on Phillip Island in Victoria is facing legal actions for allegedly underpaying three workers $40,009.

The Fair Work Ombudsman is taking to court Phillip Island Souvenirs, trading as U-Neek Souvenirs & Motorsport, after three workers sought assistance due to underpayments, which occurred between October 2018 and December 2020.

The store paid the workers flat hourly rates of $20 on weekdays and $25 to $27 on weekends, despite the workers being allegedly entitled to hourly rates of up to $26.76 on weekdays, up to $37.42 on Sundays and up to $48.17 on public holidays.

One worker, who was a Slovenian visa holder, was underpaid $7298, and the other two were allegedly underpaid $22,583 and $10,128.

The company also breached workplace laws by failing to issue its staff compliant pay slips. It also did not provide the workers copies of their employment records or make the records available for their inspection despite the workers’ request.

The Fair Work Ombudsman is seeking penalties of up to $31,300 to $66,600 per contravention from Phillip Island Souvenirs Pty Ltd and penalties of up to $6,260 to $13,320 per contravention from the company’s sole director and owner, Bruce Wisbey.