Little India takeaway owners could face massive fines for allegedly underpaying fast food employees

The owners of a Hobart takeaway could face massive fines for allegedly underpaying its staff to the tune of $63,000 following an upcoming penalty hearing in court. LATEST DETAILS >>

• Owners of Little India, Hobart to face court after Fair Work allege $63k in underpayment
• Fair Work check shows widespread underpayments by local business

The owners of Hobart’s Little India takeaway will face a penalty hearing in court in the coming months after allegedly underpaying their workers to the tune of $63,000.

On Thursday, lawyers told the Federal Circuit Court in Hobart that the Fair Work Ombudsman had spoken with the restaurant’s owners, married couple Satchithanantha Chelliah and Mahesvery Toolseram, and resolved issues surrounding liability.

Registrar Susie Stone heard Mr Chelliah, who has run the popular Harrington Street fast food joint since 2001, was currently in Malaysia and couldn’t return to Tasmania due to COVID-19 travel restrictions.

Little India restaurant at Harrington Street, Hobart. Picture: Chris Kidd

Mr Chelliah and Ms Toolseram could each face massive fines for the alleged underpayments – with maximum penalties up to $12,600 for each contravention of the Fast Food Industry Award.

Ombudsman Sandra Parker has asked for a half-day hearing, with a date yet to be fixed.

Ms Parker alleges Mr Chelliah and Ms Toolseram paid 17 casual employees “unlawfully low flat rates”, resulting in a total of $63,065 in underpayments.

Alleged individual underpayments, which have since been “rectified in full”, ranged from $270 to $15,224 and occurred between July 2017 and June last year.

The employees affected included an international student and two young workers aged 18 and 20 at the time.

Ms Parker said inspectors began investigating Little India after one of its employees made a request for assistance.

It is claimed that inspectors found workers were paid flat rates that did not meet various entitlements owed under the award, including minimum wages, casual loading, and penalty rates for weekend and public holiday work.

Record-keeping and pay slip contraventions were also alleged.

Ms Parker will also seek orders for Mr Chelliah and Ms Toolseram to commission an independent audit of wage payment practices and provide her with the results, as well as undertake Fair Work Ombudsman training.

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