Legal action has been taken against an IGA supermarket owner in Melbourne for allegedly underpaying employees at two supermarkets.
Said “Sam” Haddad, former owner of Altona IGA and current owner and operator of the Fairfield IGA supermarket, will face the Federal Court over claims he underpaid six employees at Altona and Fairfield IGA by $11,373 between November 2013 and November 2015, and submitted false records to the Fair Work Ombudsman.
According to the Ombudsman, documents filed in court showed the staff members were paid flat rates that range from $15 to $20 an hour less than the minimum hourly rates, underpaid with casual loadings, overtime rates and penalty rates for evening, weekend and public holiday work they were entitled to under the General Retail Industry Award.
The operator also allegedly failed to pay annual leave entitlements, uniform allowance and an entitlement payable when shifts were less than 12 hours apart.
The Ombudsman said the operator had provided false time-and-wages records and breached laws relating to pay slips, frequency of pay and agreeing in writing to a regular pattern of work with part-time employees.
“Young workers can be more vulnerable to exploitation as they are often not fully aware of their rights or reluctant to complain,” Natalie James, Fair Work Ombudsman.
Also facing court in relation to the alleged conduct are two companies Haddad is a director of, Hadya Nominees Pty and Déjà Vu Elite Security Pty Ltd.
Haddad faces maximum penalties of $10,800 per contravention. Hadya Nominees and Déjà vu Elite Security face up to $51,000 and $54,000 per contravention respectively.
Haddad and Hadya Nominees were also requested to make back-payments to two workers who have allegedly not been back-paid. The other four workers have already been back-paid.
The Ombudsman is seeking Court Orders requiring a workplace notice detailing employee entitlements to be displayed at the Fairfield IGA and other stores covered by the General Retail Industry Award operated by Déjà Vu Elite Security or Haddad, and an injunction restraining Haddad from being involved in underpaying workers in future. If the injunction is granted, Haddad could face contempt of court proceedings for any further underpayment breaches.
A directions hearing is listed in the Federal Circuit Court in Melbourne on March 15.
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