Belconnen Foot and Thai Massage owner broke workplace laws, threatened employees

The owner of a massage business allegedly threatened to have his workers families assassinated if they complained about their cramped living conditions and low wages.

The owner of a popular massage business threatened to have his worker’s family members assassinated if they complained about their cramped living conditions and low wages, a court has found.

The Federal Court of Australia has found the former owner of the now defunct Belconnen massage business, Colin Elvin, breached workplace laws by threatening and underpaying foreign workers.

Justice Anna Katzmann described Mr Elvin as a “dishonest” man and an “unreliable witness”.

The Fair Work Ombudsman took Foot and Thai, Mr Elvin and former parlour supervisor Jun Puerto to the Federal Court in 2018, yet proceedings were delayed due to Covid.

The court heard Mr Elvin recruited workers from the Philippines promising yearly salaries of $52,000 with paid holidays, free accommodation, food, utilities and transport to work.
Yet once in Australia the promise of a better life soured, with workers subjected to low pay, long hours, cramped accommodation, strict rules and threats of deportation and violence towards their families.

The former owner of Foot and Thai Massage, at Belconnen, allegedly threatened his staff.

Former employees alleged Mr Elvin threatened to kill their families in Philippines if they spoke up about their working conditions and pay.

The threat occurred during a late-night meeting in 2012, with Mr Elvin allegedly stating that it would be “easy” to arrange an assassination as it would only cost him 10,000 pesos (about $250), the court heard.

Employees allege Mr Puerto would consistently reference Mr Elvin’s 2012 threat by making a slit throat gesture to the workers whenever reminding them about the rules.

Mr Elvin denied making such threat but Justice Katzmann accepted the evidence from the workers.

The court heard employees were told to abide by a number of strict rules, and that breaking those rules, or failing to report on other staff members breaking those rules, would result in deportation.

The therapists claim they were forbidden from having friends or partners, speaking to anyone about pay or conditions, or bringing their mobile phones to work. Staff were also forbidden from speaking any Filipino languages at work, or letting their customers know they were not Thai.

Additionally, former employees said they were forbidden from consuming alcohol, soft drinks, junk food or white rice.

Justice Katzmann said threatening deportation and violence contravened the Fair Work Act.

“(These threats were given) with intent to coerce them not to exercise their rights to complain about their working conditions,” she said.

The matter against now defunct Foot and Thai massage was heard in the Federal Court of Australia. Picture: David Crosling

Former employees allege they were made to pay back the company $800 in cash each fortnight for a period of eight months.

Justice Katzmann said the requirement of staff to repay Foot and Thai Massage was “unreasonable in the circumstances”, and a breach of their contract that resulted in staff being paid below award wages.

“The obvious purpose of requiring these payments to be made in cash rather than complying with the contract was to avoid the detection of the authorities,” Justice Katzmann said.

The court heard all massage therapists employed at Foot And Thai lived with Mr Puerto in a four-bedroom house in the suburb of Higgins with up to six people living in a single room.

Former employees claim they were not given any other accommodation options and two alleged Mr Elvin confiscated their passports when they moved into the household.

The former employees told the court they were subject to early curfews, their mobile phones were confiscated at night, and they were unable to leave the house unless the gate was opened for them.

Mr Elvin denied locking the gate and said the chain was only there to give the appearance of being locked.

The court has ordered Mr Elvin to reach a repayment agreement with his former employees.

If the parties are not able to reach an agreement by December 16, 2021, the Federal Court will launch an inquiry to determine how much the former staff members are owed.

The case has not concluded with Justice Katzmann still to determine what relief should be granted.