Paget business Specialised Linen faces court for alleged worker underpayment

Investigations into a Paget business have unveiled more than 26 of its employees were allegedly underpaid, including one 17 year old and four visa holders. Read where.

A lawsuit has been launched against a Paget business as investigations reveal it allegedly underpaid its staff tens of thousands in less than a year.

The Cairns based company Specialised Linen had businesses in Paget as well as Bankstown in New South Wales, Torrensville in South Australia and Broadmeadows in Victoria, all of which came under scrutiny after anonymous reports tipped off authorities to the alleged wage theft.

The Fair Work Ombudsman will allege the four companies together underpaid their workers to the amount of $26,326 in a six to nine month period.

At the time of the alleged underpaying, Specialised Linen had one 17 year old and four visa holders in its employment.

Regulator investigations showed the companies allegedly failed to pay shift workers overtime and either did not pay or underpaid shiftwork and certain weekend penalties from January 2018 to between July and October 2018.

At the time of the alleged underpaying, Specialised Linen had one 17 year old and four visa holders in its employment among the businesses.

Fair Work Ombudsman Sandra Parker said matters involving young workers and visa holders were treated particularly seriously, as they could be vulnerable to workplace exploitation.

“The Fair Work Ombudsman will continue to use all powers available to us to hold employers to account when we encounter allegations that involve vulnerable workers,” Ms Parker said.

“All workers have the same rights in Australia regardless of age or visa status and anyone with concerns about their pay or entitlements should contact the FWO for free assistance.”

If misconduct is proven, each business will face a maximum penalty of $63,000 per contravention.

The business names facing court are Specialised Linen Services (Sydney) Pty Ltd of Bankstown, NSW; Specialised Linen Services (Adelaide) Pty Ltd of Torrensville, South Australia; Specialised Linen Services (Cairns) Pty Ltd of Portsmith and Paget, Queensland; and Specialised Linen Services (Melbourne) Pty Ltd of Broadmeadows, Victoria.

A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on February 28, 2022.