How Brownport Almonds underpaid 200 staff more than $500K
Brownport Almonds, one of Australia’s biggest nut growers and processors, has been ordered to back-pay 200 workers more than $500,000.
It must also make a $50,000 “contrition payment” to the Commonwealth government as punishment for the wage theft.
How Brownport Almonds underpaid staff
The company, trading under the Bright Light brand, operates a farm and processing facility in Hattah in Victoria’s north-west.
The Fair Work Ombudsman commenced an investigation as a result of wage theft complaints from workers.
During the investigation, inspectors found that Brownport Almonds had misclassified its workers under the Horticulture Award, leading to underpayments.
The company then conducted a payroll audit covering 2016 to 2021 and found that it had underpaid 197 current and former employees a total of $501,511.
In a nutshell, the Brownport Almonds had classified and paid workers at the level 1 classification.
They were, in fact, entitled to higher rates of pay because they were performing duties of a higher classification.
The misclassified employees received flat rates of pay, even if they worked overtime or shiftwork.
These amounts were insufficient to cover their lawful minimum entitlements.
Overall, employees were underpaid minimum hourly rates, and not paid penalties for working afternoon and night shifts and for public holidays, nor overtime and allowances.
Individual back-payments range from $4 to almost $12,500. The average back-payment is about $2,570.
Enforceable Undertaking
Most underpaid employees worked on a full-time or casual basis in harvesting and production roles, including tractor and machinery operators and also farm hands.
Brownport Almonds has already back-paid the large majority of employees, including current and former employees.
It has signed an Enforceable Undertaking with Fair Work which requires the company to back-pay all staff by the end of January 2024.
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No excuse
Industrial advocate Miles Heffernan said there is no excuse for wage theft.
“Under-classification deprives hard working employees of the pay they deserve and are entitled to,” Mr Heffernan said.
“This company didn’t check its payroll systems for years and allowed these underpayments to go on during that time.
“It’s now left with a huge back-payment bill, including interest and superannuation.”
Mr Heffernan advised workers who are not being paid their proper wages and entitlements to contact Fair Work Claims today.
“Our team has an intimate knowledge of wage theft laws and has extensive experience recovering every last cent for our clients,” Mr Heffernan said.
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