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Printing Business In Court After Ignoring Order To Back-pay $230,000

Printing business in court after ignoring order to back-pay $230,000

The operator of a printing business is facing court after allegedly ignoring an order to back-pay 14 migrant workers $230,000.

The Fair Work Commission issued the business with a Compliance Notice last year, requiring it to back-pay the workers by August.

Printing business in court

Lloyd Lam runs a printing business called Mega Tabs Services at Alexandria in inner-Sydney.

Fair Work alleges Lam ignored a Compliance Notice to rectify underpayments of $229,564 owed to 14 workers from Korea working in Australia on working holiday visas.

Lam allegedly paid a flat hourly rate of $13 to cut, glue and assemble paper and cardboard products between November 2013 and November 2015.

The alleged illegal flat rates resulted in underpayments of minimum rates of pay, casual loadings, shift allowances in addition to public holiday penalty rates and overtime rates.

The workers should have been paid between $20.63 and $21.69 an hour, and penalty rates of up to $54 an hour.

Lam owes one individual worker a staggering $36,666.

Printing business offered Compliance Notice instead of court action

Instead of commencing litigation against the company, Fair Work inspectors decided to issue the company with a Compliance Notice.

The regulator gave Lam and his company until the 27th of August to back-pay the workers, however he has allegedly failed to do so.


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Fair Work gets it wrong ‘yet again’

Miles Heffernan said Fair Work should have taken court action from the outset.

“This employer has stolen $230,000 from his workers, and the regulator thinks it is appropriate to issue a Compliance Notice. What a joke!” he said.

“Fair Work should have hauled Mr Lam and his company before the courts when these alleged underpayments were first discovered.”

Penalties

Meanwhile, Fair Work is seeking orders for Lam and his company to pay the $229,564, plus interest.

The company faces penalties of up to $31,500 and Lam up to $6,300.

The Federal Circuit Court has a directions hearing listed for 17 June.


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