The former operators of an Ali Baba Kebabs and Wraps shop are facing court for allegedly underpaying an Indian employee more than $50,000.
The Fair Work Ombudsman is taking legal action in the Federal Magistrates Court in Melbourne against Shafi Investments Pty Ltd which previously operated the Ali Baba Kebabs and Wraps outlet at Southlands Shopping Centre in Cheltenham. The shopÕs former owner Younus Mohammed and his brother Mahmood Mohammed, who managed the shop, both of Croydon North, are also facing court.
The Fair Work Ombudsman claims the two were involved in Shafi Investments underpaying the worker a total of $53,090 between April 2008 and May 2009 when the employee was in Australia as a dependant on his wifeÕs student visa. It is alleged he usually worked about 70 hours a week over six-to-seven days preparing food and cleaning but was not paid any wages for three months and then paid a flat rate of only $290 a week, instead of the alleged entitlement of more than $1000 per week.
Workplace laws relating to the provision of meal breaks and keeping of employment records were also allegedly contravened.
The decision to prosecute was made because of the significant amount involved and the employerÕs failure to rectify the alleged underpayment. Younus and Mahmood Mohammed were allegedly involved in Shafi Investments committing five breaches of workplace laws and face maximum penalties of up to $6600 each per breach. Shafi Investments faces maximum penalties of up to $33,000 per breach.
The Fair Work Ombudsman is also seeking a Court Order for Shafi Investments to back-pay the employee, who remains in Australia.
In a statement, Ali Baba Lebanese Cuisine, the franchisor, said the company was unaware of the breach until now. “We have always advised our franchisees, including both Younis and Mahmood Mohammed to pay their staff in accordance with the relevant State or Federal award. We expected that directive to be obeyed to the letter of the law. At the time of the suspected breach we were never notified of any issues occurring at Southland Ali Baba store by any authority, person or employee of the company. In December 2009, Ali Baba worked closely with the SDA and implemented an Enterprise Agreement that is similar to that used by other large national retailers.
“Ali Baba takes its obligation as a franchisor very seriously and regularly informs its franchisees about their obligations under the Ali Baba Enterprise Agreement and the minimum wage. We expect all franchisees to comply with their relevant award conditions. Ali Baba will continue to work with the Shop, Distributive and Allied Employees Association and Fair Work Australia to better educate our franchisees about their obligations to industrial relations.”