The Fair Work Ombudsman (FWO) has revealed how an industry supplier was caught deliberately and systematically underpaying migrant workers.
In October last year, the Federal Court imposed a $550,000 penalty against Winit (AU) Trade Pty Ltd, a Hong Kong-owned company that provides warehousing and distribution services in Sydney for products sold on online platforms, including eBay.
The Court also imposed a $8,190 penalty against the company’s sole director and general manager at the time of the contraventions, Song Cheng.
According to FWO, Shi Yuen Wong was a working holiday visa holder picking and packing for Winit when he had a feeling his pay wasn’t right.
“This was the first time I’d been overseas, this was my first job,” he said through an interpreter. “I basically didn’t know what things were like in Australia. I never knew overtime rates applied.”
After hearing colleagues talking about wages, Wong decided to search the Fair Work Ombudsman website for information. After reading information at www.fairwork.gov.au, Wong learned that he had rights while working in Australia.
“I never knew if [storage and warehousing employees] work on Saturday and Sunday, you are entitled to more money.”
Raising his concerns with his employers did not lead to any improvement in wages. Undeterred, Wong, a Hong Kong national who speaks limited English, gathered information from about 20 Winit colleagues. With evidence of underpayments collected, he contacted the Fair Work Ombudsman and made a request for assistance.
“There were people who believed they should be paid more money for overtime, but a lot of them were very scared about contacting [the Fair Work Ombudsman],” Wong said. “I was not scared; I believe Australia is a society with regulations.”
The result of Wong reading about his rights and coming forward for help culminated in back-payments in full for 30 migrant employees who were underpaid a total of $368,684.
This included $13,000 in back-pay for Mr Wong himself.
The Fair Work Ombudsman pursued the case in court and also secured $558,190 in penalties against the employer and one of its directors.
“It’s not so much about the money or justice, it’s about receiving the correct entitlements and being treated fairly,” Wong said. “That was the happiest part for me.”
According to Wong, the large court-ordered penalty was expected. The Court found that the company knowingly underpaid its employees and knew that overtime, Sunday and public holiday penalties should have been paid.
“It was certainly deliberate,” Wong said.
Fair Work Ombudsman Anna Booth urged migrant workers to do what Wong did and educate themselves on their rights, then come forward for help if needed.
“Migrant workers have the same rights at work as other employees in Australia,” Booth said. “These rights must be met even if you have breached visa conditions.
“We encourage migrant workers to reach out to us for information and help.
“Protecting vulnerable and migrant workers is an enduring Fair Work Ombudsman priority. Workers like Mr Wong who come to us for help play an important role in allowing us to hold employers to account.”
Booth said that employers cannot take any adverse action against employees who reach out to the FWO, including dismissal.
Migrant workers make up around seven per cent of the Australian workforce, but are overrepresented in the Fair Work Ombudsman’s compliance and enforcement work.
They accounted for 17% of all formal disputes completed, about 20% of anonymous reports received, and 15% of all litigations initiated in 2022-23.
The FWO filed 138 litigations involving visa holder workers, and secured $15 million in court-ordered penalties in visa holder litigations, in the six financial years to June 2023.