The Fair Work Ombudsman has commenced legal proceedings against a 7-Eleven store in Sydney which allegedly underpaid two migrant employees almost $50,000, and created erroneous records for the workers.
The case comes amid a joint investigation conducted by Fairfax and Four Corners which alleges underpaying workers across the 7-Eleven store network is systemic. As well as in a series of articles published over the weekend, the claims will be aired on tonight’s episode of Four Corners on the ABC.
The most recent legal proceedings concerning 7-Eleven involves Harmandeep Singh Sarkaria, who owns and operates the 7-Eleven outlet at 354 Flushcombe Rd in Blacktown. Also facing court is Sarkaria’s company, Amritsaria Four Pty Ltd.
Sarkaria and his company allegedly underpaid two console operators a total of $49,426.
Most of the alleged underpayment relates to a migrant employee from Pakistan aged in his late 30s, allegedly short changed a total of $43,633 between March, 2012 and March, 2014.
The other employee, also from Pakistan and aged in his mid 20s, was on an international student visa when he started working at the store. Now a permanent resident of Australia, he was also allegedly underpaid $5793 between August, 2013 and March, 2014.
The Fair Work Ombudsman claims the alleged underpayments are the result of the workers often being paid rates equivalent to $10 an hour.
The employees were entitled to receive normal hourly rates of more $22 an hour and up to $29.27 an hour for some weekend, public holiday and overtime shifts.
Amritsaria Four Pty Ltd allegedly made erroneous entries into the 7-Eleven head office payroll system that significantly understated the hours the employees had worked.
The company also allegedly routinely made entries that the employees had worked only 10 hours a week, despite them working significantly more hours.
The Fair Work Ombudsman claims the erroneous entries gave the appearance that the employees were paid about $25 an hour.
Fair Work inspectors investigating the underpayments were allegedly provided with false time-and-wages sheets that understated the hours the employees had worked.
Natalie James, Fair Work Ombudsman, said a decision was made to commence legal action because of the seriousness of the alleged breaches and the involvement of vulnerable migrant employees.
Sarkaria faces maximum penalties of between $5100 and $10,200 per breach and his company $25,500 to $51,000 per breach.
He has been co-operating with the Fair Work Ombudsman in relation to rectifying the alleged underpayments.