The Fair Work Ombudsman has secured a total of AUD 90,000 (USD 63,946) in court penalties against four companies that operate commercial laundry businesses trading as ‘South Pacific Laundry’ that underpaid 22 workers, including casual workers.

The Federal Circuit and Family Court imposed fines against Specialised Linen Services (Sydney) Pty Ltd of Bankstown, New South Wales, Specialised Linen Services (Adelaide) Pty Ltd of Torrensville, South Australia, Specialised Linen Services (Cairns) Pty Ltd of Portsmith and Paget, Queensland, and Specialised Linen Services (Melbourne) Pty Ltd of Broadmeadows, Victoria.

The penalties were imposed in response to the four companies underpaying the workers a total of AUD 24,134 (USD 17,152) during periods in January 2018 and between July and October 2018. At the time of the breaches, one worker was 17 years old and four other workers were visa holders.

The affected workers all performed laundry work and were employed in full-time, part-time and casual positions.

Fair Work Ombudsman Sandra Parker said employers that underpaid vulnerable workers, including young workers and visa holders, would continue to risk facing court action.

The underpayments relate to the failure of the companies based in Sydney and Melbourne to pay overtime penalties to shiftworkers and who either did not pay or underpaid shiftwork and weekend penalties.

The companies based in Sydney, Adelaide and Cairns failed to pay overtime penalties to non-shiftworkers. In addition, the companies based in Sydney, Adelaide and Cairns underpaid or did not pay public holiday-related penalties; the Sydney company underpaid annual leave entitlements and loading; and the Cairns company did not pay penalties to an employee who took insufficient breaks.

The breaches were of the Dry Cleaning and Laundry Industry Award 2010 and the Fair Work Act’s National Employment Standards. Underpayments of individual employees ranged from small amounts to AUD 12,090 (USD 8,592) during the timeframe.

Deputy Chief Judge Patrizia Mercuri noted that ‘employers have a particular responsibility in relation to vulnerable employees to ensure that their rights are respected.’

Mercuri found that the ultimate rectification of the underpayments ‘does not displace the loss suffered by the employees who did not have access to their wages and other employment entitlements in a timely manner.’