Subway operator penalised $65,000 for ripping off worker

The former franchisee of two Subway stores in Sydney has been penalised $65,438 for underpaying a Chinese worker $16,000.

Danmin Zhang was penalised $9,255, while the company she and her husband operate, G & Z United Pty Ltd, was hit with a further $56,183 by the Federal Circuit Court.

The details

Zhang operated the Subway stores at Artarmon and Stanmore in Sydney, where according to the Fair Work Ombudsman, she underpaid the Chinese national a total of $16,345.

The employee worked in both stores and was paid flat rates of just $14 and $14.50 an hour, well below the minimum rate of $18 an hour plus a casual loading that she was entitled to.

Zhang also failed to pay penalty rates of up to $52.22 for public holiday work.

In addition, a special clothing allowance was also underpaid and laws relating to record-keeping, pay slips and requirements to inform employees about their terms of engagement and classification were also breached.

In court, Judge Julia Baird said the penalties imposed should send a message to employers of the importance of complying with their legal obligations.

The worker has since been back paid in full.

Wage theft should be a criminal offence

Industrial advocate James Vercoe from Fair Work Claims said it’s too easy for employers to steal their worker’s wages.

“Unfortunately cases of systemic and deliberate wage theft are rife in some industries, including retail, hospitality and fast food,” he said.

“For many employers, it’s a numbers game.  They simply don’t expect workers to fight for their stolen wages because they know how hard it can be.  And that’s just not okay in this country.”

Mr Vercoe once again called for wage theft to be made a criminal offence.

“It is clear that current enforcement and penalties are not working, so it’s time that state and federal governments toughened up,” he said.

“Until we start locking up people like Ms Zhang and slapping them with criminal convictions, then greedy employers will continue to steal from their workers, because the chances of getting caught are remote, and even if you do, the penalties are not severe.

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