Little India takeaway fined $42,000 after underpaying staff at $10 flat rate per hour

Hobart’s Little India takeaway restaurant has been slammed with an eye-watering fine for underpaying 17 staff members with a flat rate of $10 per hour. SEE THEIR PUNISHMENT >>

TAKEAWAY restaurant Little India has been fined $42,336 after underpaying 17 of its employees tens of thousands of dollars.

Owners of the Harrington Street business, married couple Satchithanantha Chelliah and Mahesvery Toolseram, had been paying just $10 an hour, flat rate, to their casual fast food employees.

The Fair Work Ombudsman investigated after receiving a request for help from one of the workers.

In total, the couple underpaid their staff $63,065.74 between July 2017 and June 2019, with individual underpayments ranging from $270 to $15,225.

The workers included a number of students, three visa holders, two from India and one from Nepal, and two young workers aged 18 and 20.

Fair Work Ombudsman Sandra Parker. Picture: Aaron Francis

The owners also breached payslip and record-keeping requirements.

Fair Work Ombudsman Sandra Parker said on Tuesday that the underpayments were rectified in full as of October 2020.

“We know migrants and young workers can be vulnerable to exploitation and we will not hesitate to take action to protect their workplace rights,” she said.

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The penalty was imposed by the Federal Circuit and Family Court of Australia, which noted the owners had paid the $10 flat rate “irrespective of the age of the employee and the hours worked”.

Little India in Harrington Street, Hobart. Picture Chris Kidd

Deputy Chief Judge Patrizia Mercuri said the rate was “significantly less” than the minimum hourly rate, and that the employees didn’t receive any of their other entitlements for casual loadings, weekend and public holiday penalty rates.

She said the employees had to wait a “long time” to wait for their entitlements, with some employees saying they’d experienced financial difficulties as a result of not being paid in full.

“Whilst the respondents have since rectified the underpayments in full and this is a factor to have regard to in the setting of an appropriate penalty, it is important to recall that in making the rectification payments, the respondents did no more than they were legally obliged to do, and many months, if not years, after that obligation arose,” Deputy Chief Judge Mercuri said.

“During that time, the respondents retained those funds for their own benefit.”

Deputy Chief Judge Mercuri said it was important to impose a penalty that would dissuade others from similar conduct.

“This is all the more so in industries which attract vulnerable workers, including foreign students on limited work visas and young people generally,” she said.

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