Firm in firing line as staff stung for $230,000

The Fair Work Ombudsman has taken legal action against a Sydney company for failing to back pay almost $230,000 in wages.

The Fair Work Ombudsman has taken legal action against a Sydney company for failing to back-pay almost $230,000 in wages owed to 14 Korean workers ­unlawfully paid a flat rate of $13 an hour.

Printing finishing business Mega Tabs Services, and its ­director, Lloyd Lam, will face the Federal Circuit Court next month for allegedly failing to satisfy a compliance notice directing the wages be paid to the workers by August last year.

The 14 workers, who sought assistance from the ombudsman in March 2016, were in Australia on 417 working visas when each were employed for different ­periods between 2013 and 2015.

The workers were allegedly paid the $13 hourly rate to cut, glue and assemble paper and cardboard at the company’s ­Alexandria premises in inner Sydney. This allegedly led to underpayments of base rates of pay, casual loading, afternoon and night shift allowances, public holiday penalty rates and overtime rates.

Under the Graphic Arts, Printing and Publishing Award, the workers were entitled to combined base rates and casual loading of between $20.63 and $21.69 per hour, and penalty rates of up to $54 per hour.

Individual workers are allegedly owed between $4105 and $36,666.

Fair Work inspectors issued a compliance notice to the company last July requiring it to pay $229,564 to the workers within a month, but the notice was not complied with.

The company did not seek a review of the notice nor did it offer a “reasonable excuse” for not complying.

The agency is seeking orders for the company and Mr Lam to be liable to pay the $229,564 plus interest. The company also faces a penalty of up to $31,500 and Mr Lam up to $6300 for allegedly contravening workplace laws.

Fair Work Ombudsman Sandra Parker said business operators must not fail to comply with notices without a reasonable ­excuse.

They can also make a court application for a review if they seek to challenge a notice.

“The Fair Work Ombudsman enforces compliance notices to assist employees and protect the integrity of the workplace relations system,” Ms Parker said.