Geelong cafe underpaid junior employees, faked timesheets

A Geelong cafe accused of underpaying junior employees and creating fake timesheets has copped a hefty fine.

March 2015, Geelong Generic file shots of land marks around the city of Geelong Victoria. Geelong Magistrates Court Picture: Mitch Bear

A Geelong cafe accused of underpaying junior employees and creating fake timesheets has been forced to fork out almost $100,000.

JMSL Pty Ltd – which once operated the Coffee Club Bay City outlet – and director Edison Peng faced the Federal Circuit and Family Court last week accused of contravening the Fair Work Act and failing to comply with record-keeping and pay slip obligations.

Judge Caroline Kirton ordered the company to pay $96,336 to the federal government, while Mr Peng will be forced to hand over nearly $20,000.

The court heard both employees, aged 19 and 20, worked between six and 42 hours per week and were paid a flat rate of $15, except on public holidays when one worker received an additional $50 per day.

The pair weren’t paid Saturday or public holiday penalty rates, casual loading or the minimum junior rate of pay required by law.

All payments were made either in cash or by electronic transfer.

It’s understood the company has since paid back wages owed to the two former employees.

According to court documents, the JMSL Pty Ltd revealed the Coffee Club terminated the partnership with the Geelong cafe in 2019, and was “no longer trading” as a franchise.

But Judge Kirton said the submissions were made “without any evidentiary basis”.

A Coffee Club spokesman confirmed JMSL Pty Ltd was no longer operating the Westfield franchise.

Both the company and Mr Peng “admitted” to underpaying employees, but fought to have the penalties reduced.

The Fair Work Ombudsman, which brought the claims to court, also alleged the cafe provided “false or misleading” employee timesheets and pay slips to the regulator through the course of the investigation.

Judge Kirton said the false records were “deliberate steps taken by (the company and director) to conceal the fact that the employees were being paid rates which were inadequate”.

“The deliberate provision of false information to a regulator is inexcusable and will be met with a strong penalty outcome,” she said.

About 66 false documents were provided to the Ombudsman on two separate occasions.

Mr Peng submitted he had faced “significant embarrassment” as result of the proceeding and expressed remorse for his conduct.

Both parties have 28 days to pay.

Originally published as Geelong cafe underpaid junior employees, faked timesheets