Asian workers at Melbourne grocery store paid $10 an hour, economics professor owner penalised

Former associate professor of economics and his company fined $121,000 for underpaying vulnerable workers.

The grocery store in Melbourne where workers were paid as little as $10 an hour. Picture: Supplied

A “highly qualified” associate professor of economics and his company have been penalised $121,000 for unlawfully paying vulnerable overseas workers at his Asian grocery store in Melbourne as little as $10 an hour.

Jordan Shan, the sole director of Jenni International which operated Dae Bark Mart grocery store in Flinders Street, claimed ignorance of the award system despite being given a copy of the restaurant award when under earlier investigation by the Fair Work Ombudsman for

underpaying a worker at a separate business.

Federal Circuit Court judge Alister McNab imposed a $90,000 on Jenni International and a $31,000 penalty on Mr Shan after previously ordering them to pay $15,000 in backpay and interest to two workers.

The workers were paid flat rates of $10 to $12.50 per hour, despite being entitled to minimum hourly rates of $19.44 for ordinary hours, $24.30 on Saturdays, $38.88 on Sundays and up to $48.60 for overtime under the retail award.

Given Mr Shan had been investigated previously by the FWO, given a copy of the restaurant award. and held the position of associate professor of applied economics at Victoria University, the court did not accept his claim he was unaware of the award system.

Mr Shan and Jenni International failed to pay minimum wages to the employees, let alone pay award base rates, overtime rates, penalty rates and annual leave.

Mr Shan sought maximum penalties of $55,000, telling the court he had $950,000 in debts and a significant penalty would cause the collapse of the business and loss of five jobs.

The Fair Work Ombudsman sought maximum penalties totalling more than $1 million.

But Judge McNab said the amount sought by the FWO was “excessive” and the $121,000 imposed by the court was high and achieved the purpose of deterrence.

Massage parlour and accountant fined

In a separate judgment, Judge McNab imposed penalties of $19,100 after a former Victorian massage parlour operator admitted it underpaid a Chinese worker $13,522 and provided false records to inspectors.

He ordered the company’s accounting firm, Keith Golding & Associates, to pay a $5000 penalty for its involvement as an accessory in the company’s false record breaches.

Fair Work Ombudsman Sandra Parker said the case showed the regulator would use accessorial liability laws to hold professional services firms to account where they were involved in breaching workplace laws.

“Third parties such as accountants should be aware that they can be ordered by a court to pay penalties if found to be involved in contraventions,” Ms Parker said.

Judge McNab said the underpayments were significant, and the conduct of the accounting firm required deterrence.

He said the accounting firm was providing professional services which, in effect, encouraged the former massage parlour operator to authorise the accountants to produce false documents to the ombudsman.