Transport Company Owner in Court Over Allegations of Underpayment of Drivers

Share This Post

The Fair Work Ombudsman (FWO) has stepped in, in a case involving the alleged underpayment of drivers.

The Coffs Harbour drivers say they have been underpaid on the minimum hourly rates as well as on their overtime and public holiday work.

The FWO began legal proceedings against the former owner-operator of a NSW transport company.

The operator located on the northern coast of NSW, allegedly underpaid 12 of its truckies more than $143,000. The drivers claim the underpayments occurred between 2011 and 2014.

The company has now been defunct but the former Woolgoolga man told the drivers he would pay them a flat hourly rate of between $17 and $23, 7 days a week. But drivers claim the man used false records to short-change them on the rate they had agreed upon. He apparently also short-changed them on casual loadings and penalty rates for the weekend and public holidays, as well as on overtime.

The operator was transporting groceries ordered online for a major transport company that had been contracted by one of the country’s leading retailers.

FWO determined that the contract price being paid by the retailer to the transport giant and down to the defunct operator was sufficient enough to pay the drivers the minimum lawful entitlements.

In an article on Fullyloaded.com.au Fair Work said it had launched an inquiry and issued a Notice to Produce records to the owner-operator after they received a request for assistance from one of the short-changed drivers.

The owner-operator being accused then provided Fair Work inspectors with falsified timesheets that showed the drivers had received higher pay than they actually had. The article on Fullyloaded.com highlighted,

The false records allegedly misstated the number of hours clocked by employees and also stated that Singh undertook driving duties during a period when he was in fact travelling overseas.

Fair Work Ombudsman Natalie James says a decision was made to commence litigation owing to the seriousness of the alleged contraventions.

Source: https://www.fullyloaded.com.au/industry-news/1601/transport-company-owner-taken-to-court-over-alleged-underpayments.

The man is facing maximum penalties of between $3400 and $10,200 for each contravention.

The FWO wants the operator to be obligated to pay any penalties imposed to the underpaid drivers and also wants him to complete the ‘Hiring Employees’ training course on the Ombudsman’s website.

According to Fullyloaded.com.au a penalty hearing is scheduled to take place on Tuesday 12 April in the Federal Circuit Court in Sydney.

Share This Post
Facebook
Twitter
LinkedIn
Email
Leave a Comment
Scroll to Top
Scroll to Top