Shafi Investments, the former franchisees of an Ali Baba store at Southland Shopping Centre in the Melbourne suburb of Cheltenham have been fined $100,000 and ordered to pay back an employee $50,751.

Younus Mohammed, the store’s former owner, has also been fined $22,000, and his brother Mahmood Mohammed, who managed the shop, has been fined $14,000 after Federal Magistrate Dominica Whelan found the brothers were involved in Shafi Investments underpaying the employee.

The case first came to the Fair Work Ombudsman’s attention in September 2011 when it alleged an Indian employee, who was in Australia as a dependant on his wife’s student visa at the time, was being overworked and underpaid.

According to a media release issued by the Fair Work Ombudsman, between April 2008 and May 2009 the former employee worked around 70 hours each week over six to seven days.

He was not paid any wages for the first three months, and when he was finally paid received a mere $290 per week.

Under workplace laws, the foreign worker should have received a weekly wage of more than $1000 per week.

Fair Work Ombudsman, Nicholas Wilson said employers often take advantage of foreign staff.

“Foreign workers can be particularly vulnerable because they may not fully aware of their workplace rights and are often reluctant to complain, so we place a high priority on taking action to protect them.

“Successful prosecutions such as this also benefit employers who are complying with workplace laws because it helps them to compete on a level playing field,” he said.

In a statement released by Ali Baba, the franchisor said while it was disappointed to learn that one of its former franchisees was fined, employment agreements are made by franchisees and their employees, rather than the franchisor.

“All employment agreements at store level are between the franchise partner and their staff, however as a leading Australian brand we are committed to ensuring we direct our franchise partners to meet all the necessary regulatory and legislative requirements,” the statement said.

Ali Baba accepts the ruling, and said it continues to enjoy a good relationship with the Fair Work Ombudsman.