Boss slugged with maximum penalty for not paying employee for 3 months

Tuesday 5 September, 2017

An agency named United Consulting supplied the employee to work as a mechanic at a car dealership in Richmond between January and March last year, but failed to pay the worker any wages.


Run your own business?  Get protected with CCIQ membership.

    Or sign up for mail to get our business insights


A Melbourne labour-hire operator who paid a Pakistani apprentice overseas mechanic nothing for almost three months work has been hit with maximum penalties and referred to the Commonwealth Director of Public Prosecutions.

A Federal Circuit Court judge penalised Leonar­d Greenan, formerly of Mount Martha a total of $10,800 after he had engaged in “appalling” conduct and shown no remorse for his actions.

Fair Work Ombudsman inspectors investigated Mr Greenan, trading as ‘United Consulting’ or ‘United Consulting Services’ after receiving an underpayment allegation from a Pakistani worker Mr Greenan had employed.

The employee, 29, was in Australia on a bridging visa and obtained loans in order to pay $9,500 to Mr Greenan for a visa sponsorship service he offered but did not progress.

Mr Greenan supplied the employee to work as a mechanic at a car dealership in Richmond between January and March last year, but failed to pay the worker any wages.

The Fair Work Ombudsman issued a Compliance Notice requiring Mr Greenan to back-pay the worker a total of $7066 in outstanding wages. The notice was not complied with.

Judge Joshua Wilson said Mr Greenan issued invoices to the dealership “allegedly for [the worker’s] wages but in reality for the progressive down payment of the purchase price for an expensive Peugeot motor vehicle”.

4967991852 e35719e216 b

“In view of my observations that aspects of the respondent’s acquisition of his car using money due to [the worker] might be criminal in nature, I have referred this case to the Commonwealth Director of Public Prosecutions,” Judge Wilson said.

“I take the view that in this case the conduct of the respondent has been appalling,” Judge Wilson said.

“He personally benefitted out of [the worker’s] service, rather than paying [the worker], wholly antithetical to his role in placing [the worker] and his obligations under the [Fair Work Act].  

“It warrants condemnation by the imposition of penalties for the brazen attitude that the respondent adopted.

“The respondent could have but failed to offer a repayment regime. He could have but failed to make any payments to [the worker].

“The only contrition exhibited by the respondent lay in his being caught. In my view, there was no real contrition in this case,” Judge Wilson said.

Under the Fair Work Act, business operators must adhere to Compliance Notices or make a Court application for a review if they are seeking to challenge a Notice.

Judge Wilson also found Mr Greenan had breached record-keeping laws.

Fair Work Ombudsman Natalie James says the decision delivers a clear statement that ignoring a Compliance Notice will not be tolerated.

“We welcome the court’s decision to award maximum penalties in this case,” Ms James said.

“The conduct of the labour-hire employer in this case was particularly disappointing, with a vulnerable overseas worker being exploited by the very person he was reliant on and had paid for assistance.

“We know overseas workers can be more vulnerable to exploitation as they are often reluctant to complain, may have language barriers or are less aware of their rights, and we take the underpayment of these workers extremely seriously.”

This is a copy of an article published by SBS on 4 September 2017.

Post your comment


No one has commented on this page yet.

RSS feed for comments on this page | RSS feed for all comments