A Federal Court ruling has left a Tasmanian service station operator facing a hefty bill after underpaying migrant workers and issuing fake pay slips. KLM Foods Pty Ltd, which ran two United Petroleum-branded outlets in Hobart and Kingston, has been fined $135,143, while its sole director, Loveleen Gupta, has been hit with an additional $44,078 penalty.
Four visa holders, including a 19-year-old, were underpaid a total of $20,230 over just two months between December 2020 and February 2021. They worked as console operators, receiving flat rates as low as $16 per hour with no extra pay for overtime or weekend shifts—despite entitlements under Australia’s award system.
The breaches didn’t stop at underpayments. KLM Foods issued dodgy pay slips, kept false timesheets, and demanded an unlawful cashback payment of $6,353 from one worker even after rectifying wages. The Federal Circuit and Family Court found these actions showed a “blatant disregard” for employment laws, with no remorse from those responsible.
Judge Karl Blake didn’t hold back, calling the cashback demand “particularly unpalatable” and highlighting how the exploitation hit workers who had little knowledge of their rights. Two of the underpaid workers, both international students, testified that the financial strain affected their well-being and made it difficult to cover basic living expenses.
Fair Work Ombudsman Anna Booth said underpayments of migrant workers remain a pressing issue. “We condemn these exploitative practices. Employers should be aware that taking action to protect vulnerable workers, like visa holders, is an enduring priority,” she said.
The case was part of a larger investigation into United Petroleum-branded outlets, with audits across five states uncovering further breaches. Separate court actions are ongoing against other operators, while some businesses have been forced to reimburse workers after compliance notices were issued.
Since 2017, the Fair Work Ombudsman has secured nearly $23 million in penalties for cases involving visa holders.
Employers and workers can seek information on fair pay and conditions via www.fairwork.gov.au or the Fair Work Infoline at 13 13 94.
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