Former Hotelier Faces Court Over Alleged $7 An Hour Payments

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10th February 2010, 10:00am - Views: 492

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Fair Work Infoline: 13 13 94 

Media Release

    10 Feb 2010

Former hotelier faces court for allegedly paying

employee just $7 an hour

The Fair Work Ombudsman has launched a prosecution against the former

operators of a hotel in North-East Victoria for allegedly paying a casual employee

just $7 an hour.

Documents lodged in the Melbourne Magistrates’ Court allege the worker was

underpaid a total of $27,875 between October, 2006 and May, 2009.

Facing court is Ringinn Pty Ltd, which previously ran the Whorouly Hotel near

Wangaratta, and Greg Walter Ring, the company’s sole owner.

The Fair Work Ombudsman claims the employee generally worked seven days a

week and was usually paid a flat rate of $7 per hour, or $90 to $150 per week.

He was entitled to receive between $17.31 and $19.50 an hour for his duties,

which included delivering mail, driving and bar work.

Fair Work inspectors discovered the alleged underpayment when they

investigated a complaint from the employee.

Mr Ring was allegedly also involved in his company failing to make and keep

proper employment records for the employee and failing to issue him payslips.

Fair Work Ombudsman Executive Director Michael Campbell says the decision to

prosecute was made because of the significant amount involved and the

employer’s failure to rectify the matter - despite numerous requests.

The Fair Work Ombudsman alleges Ringinn and Mr Ring have committed several

breaches of workplace laws.

The maximum penalty per breach is $33,000 for Ringinn and $6600 for Mr Ring

for the underpayment matters and $5500 for Ringinn and $1100 for Mr Ring for

the employment record and payslip matters.

The Fair Work Ombudsman promotes harmonious, productive and co-operative

workplaces. It also monitors compliance and investigates breaches of national

workplace laws.

Employers or employees seeking assistance should contact the Fair Work Infoline

on 13 13 94 or visit For translations call 13 14 50.

Media inquiries:

Craig Bildstien, 0419 818 484.

Ryan Pedler, (03) 9954 2561, 0434 365 924.

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