Fair Work Infoline: 13 13 94
Media Release
4 Nov 2009
Newcastle business underpaid 18 workers more
than $350,000, watchdog alleges
The federal workplace watchdog has launched a prosecution against a Newcastle
labour hire company for allegedly underpaying 18 workers more than $350,000.
The Fair Work Ombudsman is prosecuting Shrek Pty Ltd and its sole owner and
controller, Peter Court.
Shrek employed the workers on a casual basis to perform duties for the
Newcastle After Hours Medical Service.
Documents lodged in the Federal Magistrates Court in Sydney allege that 12
clerical workers and six drivers were underpaid a total of $356,000 between 2006
and 2008.
The workers were allegedly underpaid the minimum hourly rate, casual loadings,
minimum shift pay, afternoon and night shift loadings, annual leave loadings and
penalty rates for weekend, public holiday and overtime work.
The biggest alleged underpayment of an individual worker is $73,000.
None of those affected remain with the company.
Inspectors discovered the alleged underpayments when they randomly audited
the company last year.
Fair Work Ombudsman NSW Director Mark Davidson says the decision to
prosecute was made because of the significant amount involved and the
employer’s failure to rectify the matter, despite repeated requests.
The Fair Work Ombudsman will allege a total of 14 contraventions of workplace
law and is seeking penalties and a Court Order for the company to back-pay the
workers.
The maximum potential penalty per breach is $33,000 for Shrek and $6600 for
Mr Court. The case is listed for mention on November 20.
The Fair Work Ombudsman promotes harmonious, productive and co-operative
workplaces. It also monitors compliance with and investigates breaches of
national workplace laws.
Employers or employees seeking assistance should contact the Fair Work Infoline
Media inquiries:
Craig Bildstien, 0419 818 484. Ryan Pedler, 0434 365 924.
NEWS 
