Franchisee Accused Of Underpaying Staff

Sydney Morning Herald:

The Fair Work Ombudsman is taking court action against a Sydney Optus World franchisee for allegedly underpaying staff by more than $80,000. The action is part of a crackdown on the exploitation of migrants.

The case is a cautionary tale for employees asked to compromise on wages and conditions by small-business owners facing tough financial circumstances.

The ombudsman alleges that seven senior managers were left out of pocket by Frank Huang, who operated Optus World at the Warringah Mall shopping centre in Sydney until 2007 and also ran a phone-card business. Three of them worked 40 hours a week for five months without any payment as an information technology engineer, marketing manager and computer administrator for the phone-card company.

At the end of this time, in December 2007 and January 2008, two were allegedly given a cash payment equivalent to one month’s wages. They had worked at the company for six years.

The general manager, assistant manager and salesman at the shop had their final pay cheques dishonoured. They had worked there for three to seven years. Full article.

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