Australia Markets closed

Sydney Subway manager slammed with $65K fine for underpaying staff

Image: Getty

The former owner of two Subway franchises in Sydney has been penalised $65,000 after underpaying a former employee by $16,345.

The employee working at outlets at Artarmon and Stanmore was paid just $14-$14.50 an hour, between October 2014 and April 2016.

That’s well below the minimum rate of $18.

The Chinese national worker was also entitled to a casual loading payment and penalty rates of up to $52.22 on public holidays.

The Fair Work Ombudsman also found the worker hadn’t been granted a special clothing allowance, and the employers had failed to meet record-keeping and pay slip requirements.

Danmin Zhang, who formerly operated the outlets was penalised $9,255 by the Fair Work Ombudsman, with the company she owns with her husband, G & Z United, penalised an additional $56,183.

The Fair Work Ombudsman investigation came after the worker – who was pack-paid in 2017 – lodged a request for assistance.

The Fair Work Ombudsman also emphasised that Zhang is no longer involved with the two Subway restaurants.

“It is unlawful for employers to pay their employees low, flat rates that undercut minimum Award wage rates. This franchisee paid their worker a flat rate that was $4 below the lawful rate, and now faces paying a $65,000 penalty from the Court,” Fair Work Ombudsman Sandra Parker said today.

“The penalty should send a message to fast food businesses that compliance in the workplace is not an option – it’s the law. Every worker in Australia has the same workplace rights and we encourage anyone with concerns to contact the Fair Work Ombudsman.”

It comes just days after fashion startup, Her Fashion Box was fined $329,113 after underpaying staff by illegally classifying them as interns. 

Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.

Now read: Delete these eight words from your resume immediately

Now read: Aussie food icon Maggie Beer sells $10 million stake in her business

Now read: Here’s a worrying chart for jobs growth