The Fair Work Ombudsman has begun legal action against the former franchisee of a 7-Eleven retail outlet in the Melbourne CBD for allegedly exploiting three international students through a cash-back scheme.
Facing court are Xia Jing Qi Pty Ltd, which operated a 7-Eleven retail store on William Street until March 2017, and the store’s former manager, Ai Ling ‘Irene’ Lin.
It is alleged that after 7-Eleven head office set up a high-tech payroll system in 2016 aimed at ensuring employees were paid lawful minimum rates, the company and Ms Lin tried to disguise underpayments of three employees by requiring them to pay back thousands of dollars in wages.
From 2016, Xia Jing Qi was required by 7-Eleven head office to use a biometric system that recorded hours of work by scanning employees’ fingerprints to sign in and out, with head office then processing the payroll.
It is alleged Ms Lin told the three employees in late 2015 they would be paid through this payroll system, but then specified a weekly sum for each of the workers to pay back via a safe box in the store or to Ms Lin’s bank account.
It is alleged that after returning this portion of their wages, the employees were left with hourly rates ranging from $8.53 to $26.52. Under the General Retail Industry Award 2010, the employees were allegedly entitled to ordinary hourly rates including casual loading of up to $24.30, up to $38.88 on Sundays and up to $48.60 on public holidays.
The Fair Work Ombudsman has also begun a second litigation against Xia Jing Qi Pty Ltd, as well as the company’s sole director, Jing Qi Xia, for allegedly underpaying an overseas worker at Ajisen Ramen in the Melbourne Central shopping centre.
Fair Work Ombudsman Natalie James says the use of cash-back schemes requiring workers to pay back part of their wages is a serious form of exploitation.
“We encourage anyone with information about cash-back schemes to come forward and assist us in our investigations” she said.
Xia Jing Qi Pty Ltd faces penalties of up to $54,000 per contravention in each of the matters, while Ms Lin and Ms Xia each face maximum penalties of up $10,800 per contravention.
The matters are listed for a penalty hearing in the Federal Circuit Court in Melbourne on October 5.
