Eagle Boys franchisee faces court for alleged staff underpayments

Sarah Stowe

The operator of a Cessnock Eagle Boys franchise will face court for allegedly paying a number of employees just $9 an hour.

Court documents allege the operator, Stacborn Pty Ltd, underpaid 17 delivery drivers and two shop assistants a total of $48,905 between October 2008 and June 2010. Five staff members were under 18 years of age at the time, and one male employee in his 20s was allegedly underpaid $11,478.

The delivery drivers were allegedly paid a flat rate of $9 an hour, but the Fair Work Ombudsman said the juniors should have been paid at least $12 and the adult workers between $14 and $18.

Fair Work inspectors discovered the alleged underpayments when they investigated a complaint lodged by one of the employees.

Only a small portion of the total outstanding amount has been back-paid, although the Fair Work Ombudsman is seeking a Court Order for back-payment of the money allegedly still owed to the workers.

The maximum potential penalty per breach is $33,000, and the Ombudsman alleges Stacborn has committed several breaches of workplace laws.