A farm business based in Werribee South, Victoria, is set to face trial due to alleged underpayments committed against two employees, alongside acts of falsification of records and unlawful deductions.
The Fair Work Ombudsman stated that Lotus Farm Pty Ltd, which primarily produces tomatoes and cucumbers, and one of the company’s directors, Son Thai, underpaid the two adult Vietnamese-speaking workers a total of $28,530.82 for work performed between June 2017 and September 2020.
It is alleged this occurred due to the two casual employees being each paid unlawful flat hourly rates of pay of between $13-$14, well under the minimum hourly casual rates then owed under the Horticulture Award 2010.
The FWO also alleged that Lotus Farm underpaid both employees’ minimum wages and casual loading and underpaid one employee’s overtime and public holiday penalty entitlements, as well as unlawful deductions made from one employee’s wages.
Thai, on behalf of Lotus Farm, was alleged to have produced 21 pay slips for one employee which stated they worked 15 hours per week and were paid the lawful amount for those hours when in reality, they were generally paid the lower $13-$14 hourly rates and worked more hours than the falsified payslips.
The company also was stated to have provided false or misleading records to a Fair Work Inspector, failed to make and keep required records, and failed to provide payslips to the employees. Thai is said to be involved in the contraventions as well.
Fair Work Ombudsman Sandra Parker said the litigation sent a warning to any employer in the agriculture sector who was breaching workplace laws.
“Improving compliance in the agriculture sector and protecting the vulnerable workers who work there are priorities for the FWO,” Parker said. “Employers who underpay their workers and use false records will be found out and risk facing significant penalties.”
The FWO stated that the reverse onus provisions of the Fair Work Act will apply in this situation, wherein the company should have to disprove the underpayment allegations given the allegations of failure to make and keep records.
Lotus Farm faces penalties of up to $66,600 per contravention while Thai faces penalties of up to $13,320 per contravention. A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 7 August 2023.
