Melbourne company allegedly underpaid workers more than $300K

The Fair Work Ombudsman is prosecuting Quality Food World, a Melbourne food wholesaler, for allegedly underpaying 46 employees - including many foreign workers - more than $300,000. The company operates a food wholesaling business from a warehouse based at Mordialloc. Also facing court is the company’s production manager Atar Schwartz.

It is alleged that Quality Food World underpaid 46 employees a total of $316,795 between July 2007 and March 2011. Many of the employees were foreign nationals. They performed work related to the production and packaging of a range of food products. It is alleged the employees were variously underpaid their minimum hourly rates, casual loadings, public holiday pay, overtime rates and annual leave entitlements.

The biggest alleged underpayment of an individual employee is $22,358.

Fair Work inspectors first discovered alleged underpayments when they audited Quality Food World in 2011. Workplace laws related to recordkeeping were allegedly also breached. Fair Work Ombudsman Nicholas Wilson says a decision to prosecute was made because of the significant amount involved for many vulnerable workers.

The Fair Work Ombudsman alleges Quality Food World committed multiple breaches of workplace laws and that Schwartz was involved in the breaches. The company and Schwartz face maximum penalties per breach of up to $33,000 and $6600 respectively. The Fair Work Ombudsman is also seeking a court order for Quality Food World to rectify the alleged underpayments of the employees. A directions hearing is listed for 5 November in the Federal Magistrates Court in Melbourne.