Service station chain Westside Petroleum prosecuted for underpaying regional workers

EWIN HANNAN
MARCH 25, 2019
WORKPLACE EDITOR
A major service station chain is being prosecuted for allegedly underpaying 22 workers more than $62,000 over 10 months at 12 petrol stations across regional New South Wales.
The Fair Work Ombudsman alleged workers were told by Westside Petroleum Retail 1 they would be paid a net rate of $18 an hour.
The workers on adult rates were entitled to gross hourly wages of $25.05 on weekdays, $32.56 on weekends and public holidays, and an additional $14.21 for overtime hours.
The ombudsman has commenced legal action against Westside Petroeum Retail 1 and three of its management staff who were each alleged to have been involved in the company’s breaches.
The FWO alleges that employees were underpaid at the company-operated petrol stations between July 2015 and May 2016.
It is alleged the workers were underpaid $347 to $7,772, with four of the employees aged 19. Two workers were visa holders with one employee on a 489 regional sponsored visa.
All employees have now been back-paid in full.
Fair Work Ombudsman Sandra Parker said inspectors audited Westside Petroleum following requests for assistance from Westside employees.
“It is unlawful for employers to pay their employees low, flat rates that undercut minimum Award wage rates, and those who rely on an unlawful ‘going rate’ can be left with a major back-payment bill and face significant penalties,” Ms Parker said.
It is alleged the company told employees they would be paid a net rate of $18 per hour, with payroll staff then paying gross weekly amounts generally equating to about $18 per hour net and that this led to underpayments of the employees’ casual weekday, weekend, public holiday and overtime rates under the Vehicle Manufacturing, Repair, Services and Retail Award.
The company faces penalties of up to $54,000 per contravention and the three management staff face penalties of up to $10,800 per contravention.
Orders are also being sought that will require Westside to provide information to its franchisees about the outcome of this legal action, the need for franchisees and franchisors to comply with the Fair Work Act and the Award, current Award rates, and the potential for civil penalties if they do not comply.
The matter is listed for a directions hearing in the Federal Circuit Court in Sydney on April 12.