Underpayment charges

By Isabelle Harris

A CBD clothing shop is under fire from the Fair Work Ombudsman for allegedly underpaying its staff.

The clothing store 316 Melbourne and its operator Zurel Pty Ltd face charges for not adhering to a Fair Work compliance notice. 

Fair Work Victoria also alleges the company and its director, Mr Ban Teik Chee, broke record keeping and pay slip laws.

The compliance notice was served after a Fair Work inspector suspected an employee had been underpaid for their minimum hourly wage, casual holiday and other penalty rates.

The notice, which is used by the Fair Work Ombudsman to enforce workplace laws, was served last year. 

Fair Work Ombudsman Sandra Parker said the notices were used to recover unpaid wages and would be enforced when they were not followed. 

“The Fair Work Ombudsman will continue to use all its enforcement tools to ensure employers meet their lawful obligations” she said. 

Zurel was ordered to recalculate and back-pay underpayments with proof they had complied. 

The ombudsman began legal action after the business failed to comply with the notice.

Zurel Pty Ltd faces a maximum penalty of $31,500 for noncompliance in addition to maximum penalties of $63,000 per record keeping or pay slip breach. 

Company director Mr Chee individually faces up to $6300 for the breach and $12,600 per pay slip offence •

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