IGA boss Said Haddad fined $320k for underpaying workers

EWIN HANNAN
OCTOBER 22, 2018
The Australian
Penalties of $320,000 have been imposed on a Melbourne man and his two companies for deliberately underpaying six workers at two IGA supermarkets and creating false pay records.
The Federal Circuit Court found the conduct of Said Haddad, who has been subject to previous employee complaints, was “particularly egregious”.
He and the companies admitted to underpaying six employees at the Fairfield and Altona IGA supermarkets in Melbourne by $11,373 between November 2013 and November 2015. Three of the employees were aged between 19 and 23 at the time.
The employees were paid flat rates ranging from $15 to $20 an hour, resulting in underpayments of minimum hourly rates, casual loadings, overtime rates and penalty rates for evening, weekend and public holiday work.
One employee was not paid at all for one day of work. All workers have been back-paid.
Mr Haddad, who is the operator and majority owner of the Fairfield IGA and formerly the majority owner and operator of the Altona IGA, was penalised $53,377.
Mr Haddad is a shareholder and director of, Deja Vu Elite Security Pty Ltd and Hadya Nominees Pty Ltd which were penalised $157,950 and $108,936, respectively.
The underpayments occurred despite the ombudsman having provided Mr Haddad with information about his obligations to pay minimum lawful pay rates after investigating prior underpayment allegations from workers.
Mr Haddad was also a member of the Master Grocers Association, which had provided him with information about employee entitlements.
Fair Work inspectors found two employees at the Altona IGA were underpaid a total of $7466 and four employees at the Fairfield IGA were underpaid a total of $3907.
Mr Haddad and Deja Vu Elite Security Pty Ltd also breached workplace laws during the investigation by manufacturing pay records for employees at the Fairfield IGA that indicated they had been paid the correct award rates when they had not, and providing the false records to Inspectors.
Other breaches across the two stores included failure to comply with a Notice to Produce; failure to pay annual leave entitlements, uniform allowance and an entitlement payable when shifts were less than 12 hours apart; and failure to adhere to laws relating to pay slips, frequency of pay and agreeing in writing to a regular pattern of work with part-time employees.
Judge Heather Riley said it appropriate to order penalties at the top of the ranges proposed by the agency.
“It seems to me that the conduct of the respondents in this case was particularly egregious,’’ she said. “It was deliberate. There has been no apology to the employees affected by the respondents’ conduct. The respondents continue to be involved in the retail industry. The second respondent fabricated records. There is a considerable need in this case for both general and specific deterrence.”
She ordered a workplace notice detailing employee entitlements be displayed at the Fairfield IGA and other stores operated by Deja Vu Elite Security Pty Ltd or Mr Haddad.
Fair Work Ombudsman Sandra Parker said it was unacceptable that breaches occurred despite inspectors putting the operator on notice about his workplace obligations.
“All employers have a clear obligation under Australia’s workplace laws to pay correct wages and entitlements, and rectify any underpayment of their employees,’’ she said.
“If companies do not improve compliance with workplace laws, we will take court action to enforce the law.
“The underpayment of young workers is particularly serious as they can be unaware of their workplace rights or reluctant to complain. The Court’s significant financial penalties serve as a warning for all businesses who fail to act on our advice about workplace laws.”