Spotlight on underpayment:

Criminal sanctions for Wage Theft?

With the increasing casualisation of the workforce and a growing gig economy, workers are becoming increasingly vulnerable to exploitation at work. Now more than ever, wage theft is a serious issue and a hot topic deserving more attention.

If an employer is held liable for failing to pay its workers, a court can order that the business pay its workers these underpaid wages and can also issue the employer with penalties as punishment.

Image: Blogtrepreneur (CC)

While these penalties can be significant, up to $63,000 per convention, they are civil penalties and there are no criminal sanctions except in very limited circumstances.

This means that if a worker wants to try and claim their underpaid wages they have to go to court or see whether the Fair Work Ombudsman can get the employer to pay.  

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In the News:

Sham contracting and Foodora

Image: Wikipedia Commons

Foodora is being sued by the Transport Workers Union (TWU) in a test case that will determine whether these gig workers  delivering food in their distinctive pink uniform are ‘sham contractors’ and are actually employees.

Gig workers are often paid considerably below the minimum wage paid compared with employees and aren’t always offered the protection of an employer’s insurance policy and workers compensation.

If the TWU is successful in making out their case against Foodora, these employees should then be back-paid for their underpaid wages and superannuation. 

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Audits on Glebe Point Road Show 1 in 3 Workers Underpaid

Employees in the hospitality industry in Sydney recovered just under $200,000 in a recent audit of businesses in popular food precinct Glebe Point Road.  

Several restaurants and cafes in the cheap eats district were included in the Fair Work Ombudsman’s audit, which revealed that over a third of hospitality workers there were underpaid.  

Underpayment in cafes and restaurants is endemic in New South Wales.

Image: Wikipedia Commons

Employers exploit their vulnerable workers to help remain competitive with other businesses, but those hidden costs are often borne by employees.

The Fair Work Ombudsman says that there is a culture of non-compliance in the hospitality industry.

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Law in Action:

Vulnerable Workers

The federal government has taken aim at rampant wage theft by franchises like 7-Eleven, Caltex and Dominos, by passing an amendment to the Fair Work Act 2009 (Cth) that increases penalties for those that break the rules and gives the Fair Work Ombudsman greater investigative powers.

The Fair Work Ombudsman successfully took action using these powers against the owners of a Tasmania hotel. In May 2018, the hotel owners were ordered in court to repay more than $28,000 to a Malaysian couple employed in the hotel kitchen.

Fair Work Ombudsman Natalie James, commented on the case saying:

Image: Jared Rodriguez (CC)

“All workers in Australia are entitled to our minimum wages, irrespective of their background, language skills or visa status.”

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Tip of the Week:
Wage Theft

RLC is seeing increasing numbers of international students being exploited by employers and denied workplace entitlements.

Our International Student Legal Service NSW has created a short online video to educate students about their rights at work and where to go to get help.

 WATCH VIDEO>

Client story: 

Kirin's story

Kirin* came to Redfern Legal Centre for help with an unfair dismissal claim. He had been fired from a casual café job, after telling his boss that he was unable to attend an upcoming shift.  Kirin explained that he had been dismissed on the spot, despite being a faithful employee for 18 months. 

Kirin's employer had also been paying him $12 an hour, well below the rate in the Hospitality Industry Award.

Image: vagawi (CC)

With our support, Kirin was able to recover $25,000 in unpaid wages and compensation.

* Name has been changed

RLC in the Media:

Your Body, Your Choice

9 August.  RLC's international student solicitor, Sean Stimson spoke to Radio 2ser about a new multi-language resource produced by RLC, City of Sydney and Study NSW to support students who have experienced sexual assault.

READ MORE>

Download RLC's factsheet: Your Body, Your Choice

Are boarding houses a solution to housing affordability?

14 August. RLC's tenancy coordinator, Nicole Kennedy spoke to ABC Radio AM  about whether boarding houses can have an impact on the affordable housing crisis and improving conditions for tenants.

READ MORE>

Download RLC's resource:
Boarding Houses and the Law 

How Rachael escaped financial abuse

1 August. On the day the NSW Attorney General announced new funding for NSW CLCs, former RLC client Rachael Natoli spoke to Sydney Morning Herald about how RLC helped her escape financial abuse.

Redfern Legal Centre made "a massive difference to my life and the life of my boys," Ms Natoli said.

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Rachael Natoli sharing her story at RLC.

Sniffer dog searches: Festival-goers push for legal action

10 August. A group of Sydney music fans “subjected to humiliating strip searches” and then refused entry to two recent music festivals are considering legal action against the NSW Police Force.

“Young people are being subjected to humiliating strip searches, and having their festival ticket confiscated or ripped-up, even though no drugs have been found,” RLC's police powers solicitor Sam told Lee told SBS News.

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A Call to End Predictive Policing Targeting Children

RLC is calling for an end to a NSW policing practice known as the Suspect Targeting Management Plan (STMP), a “hidden” blacklist used by police to target children as young as ten. 

RLC's police powers solicitor, Sam Lee, said:

“The STMP sets young people up for failure, branding them with a ‘potential criminal’ identity and plunging them into a toxic cycle of ongoing police interactions.”               

READ MORE>
 

In the Media:
Sam Lee speaks to Radio 2ser about the STMP

Image: Cal Injury Lawyer (CC)

New laws to prevent incitement of violence

New laws prohibiting the threat or incitement of violence against any person on the grounds of race, religious affiliation, sexual orientation, gender identity, intersex or HIV/AIDS status came into effect in NSW in August, created by the Crimes Amendment (Publicly Threatening and Inciting Violence) Bill 2018.

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Police Complaints

RLC's Free NSW Statewide Service

Samantha Lee (Lawyer) has joined RLC taking carriage of the Police Accountability Practice for 12 months, while Sophie Parker is on maternity leave.

Sam has worked at Legal Aid NSW in Inner City Local Courts, Indictable Appeals and the In-house Counsel Unit. She has also worked in the Criminal Law Review Unit at the NSW Attorney General' Department.

Are you working with clients who have concerns about police conduct?

• Mobile phone searches
• Deletion of mobile phone data
• Random Breath Test  (RBTs)(especially ones that may have been used as a reason to  stop & search)
• Arrests, strip searches, stop & search
• Detention, use of force, misuse of tasers and firearms
• Move-on directions (young people and/or homeless)
• STMP
• Protesting and policing
• Racial profiling
• Policing of persons with mental health issues.

Contact RLC on 9698 7277.
Call with a free interpreter on 131 450.

MORE INFO>

Download RLC's factsheet:
Making a Police Complaint

Run For RLC

Blackmores Sydney Running Festival

RLC is proud to be an official charity partner in this year’s Blackmore's Sydney Running Festival, held on 16 September.

There's less than two weeks until the big race, but it's not too late to join us in one of Sydney's most iconic running festivals.

Learn how you can support RLC and #RunFor Justice here!

Everyone who signs up before 10 September will receive a free RLC T-shirt to wear during the race!