The Federal Circuit Court has imposed penalties totalling $192,961 on the former operators of two Brisbane CBD 7-Eleven stores for short-changing workers by more than $31,000.
The penalties are the result of a legal action by the Fair Work Ombudsman after its investigation found that 21 employees across the two stores had been underpaid a total of $31,507.27 over a 12-month period.
Viplus Pty Ltd, which operated a store in Adelaide Street, Brisbane, until July 2017, was penalised $88,140, while Vipper Pty Ltd, which operated a store in George Street until May 2017, was penalised $68,262. Penalties totalling $36,559 were also handed down against Jason Yuan, a director of both companies.
The Fair Work Ombudsman has taken legal action against 11 7-Eleven operators since 2009.
In this matter, inspectors found that the workers at both stores were paid flat rates for all hours worked, save for public holidays where they received an additional $20 per hour in cash.
Given the 24-hour/seven-day nature of the businesses, this resulted in significant underpayments of Saturday and public-holiday penalty rates, overtime rates and shift-work rates stipulated by the General Retail Industry Award 2010.
The respondents were also penalised for failing to meet record-keeping and payslip requirements, including by failing to include information in respect of cash payments made to some of the employees.
In determining the penalties, Judge Patrizia Mercuri pointed out that Mr Yuan had been running the stores for more than 12 years, had a background in finance, banking and project management, and had access to significant training and support from the 7‑Eleven head office.
In addition, Judge Mercuri noted the Fair Work Ombudsman had previously issued Vipper and Mr Yuan with a letter of caution in 2013 after an investigation found that workers at the Adelaide Street store were not being paid applicable weekend and public-holiday penalty rates.
7-Eleven says it welcomes the FWO’s legal actions against the former franchisees, adding that it fully supported the investigation.
“We welcome the judge’s acknowledgement that these former franchisees received ‘significant training and support from the 7-Eleven head office, including in relation to the obligations imposed by Australian workplace laws’,” a spokesperson said. “7-Eleven Australia has zero tolerance for wage fraud, has implemented the most comprehensive reforms in the sector to eradicate it, and will continue acting in the strongest available ways against it.”
