Migrant workers underpaid $20k in just two months at United Petroleum outlets

A group of workers as young as 19 were underpaid more than $20,000 while working at an outlet of a major Australian fuel company.

Migrant workers were underpaid more than $20,000 within just two months while working at outlets of a major Australian fuel company.

Workers were underpaid $20,230 at United-Petroleum branded outlets in Hobart’s Sandy Bay and at Kingston, south of Hobart, the Federal Circuit and Family Court has found.

The four people, working as console operators, held visas from India and Bangladesh and were each underpaid between $2597 and $9574 between December 2020 and February 2021, with one worker as young as 19.

They were paid unlawfully low flat rates between $16 and $23 an hour with a fixed number of hours per week and were also underpaid minimum wages, overtime rates, and penalty weekend, public holiday and afternoon shift work rates as outlined in the Vehicle Repair, Services and Retail Award 2020.

Workers at United Petroleum outlets were underpaid more than $20,000. Picture: Supplied

False pay slips were also issued to staff, while laws related to record keeping and written agreements for part-time staff were breached.

The Fair Work Ombudsman (FWO) was also provided with false timesheets.

Judge Karl Blake said some of the workers were “vulnerable” and didn’t understand their entitlements at the time as they’d recently arrived in Australia.

Two of the workers were significantly affected by the underpayments, which made it difficult for them to meet living expenses, according to evidence given in court.

KLM Foods, the operator of the Sandy Bay and Kingston outlets, along with Vizaan, which employed one of the Kingston outlet workers, rectified the underpayment for all workers after the FWO began investigating.

However, KLM Foods and its sole director Loveleen Gupta, who was also manager of Vizaan before it went into liquidation, then breached the Fair Work Act by requiring one of the workers to pay $6353 in an unlawful cashback payment in June 2023.

While the underpayment from that cashback has now been rectified, the court slapped KLM Foods with a $135,143 penalty.

The court also ordered a $44,078 penalty against Mr Gupta.

Each of the four workers were underpaid between $2597 and $9574. Picture: Supplied

Judge Blake found both KLM Foods and Mr Gupta “blatantly disregarded” the workers’ awards and showed no remorse for underpaying them.

“There is a need to send a strong and clear message to ensure that the type of conduct disclosed in this case is not repeated,” Judge Blake said.

In a later statement, FWO Anna Booth condemned the underpayments of the migrant workers and said all employees in Australia had “the same workplace rights, regardless of their visa status”.

“We also have zero tolerance for unlawful cashback arrangements that attempt to hide underpayments,” Ms Booth said.

“Employers should be aware that taking action to protect vulnerable workers, like visa holders, is an enduring priority for the Fair Work Ombudsman.

“Any employee with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance.”

She also said providing false records was unacceptable.

“Employers should be aware our experienced inspectors will test whether time and wages records are legitimate,” she said.

“If you use false records you will be found out and you risk being hit with substantial penalties.”

The investigation was launched as part of a broader probe into 20 United Petroleum-branded outlets across Tasmania, Queensland, NSW, Victoria and South Australia.

Proceedings were also launched against Vizaan; however, the company went into liquidation after filing.

NewsWire has contacted United Petroleum for comment.

Originally published as Migrant workers underpaid $20k in just two months at United Petroleum outlets