Subway franchisee allegedly underpaid young employees more than AU$50,000

Posted by AFN Staff Writers on 30th May 2012

The operator of four Subway outlets at Newcastle, in regional NSW, has been prosecuted by the federal Fair Work Ombudsman over more than AU$50,000 in alleged underpayments of 11 young employees.

Facing court is Nicole Patrice Dawe, of Medowie, who part-owns and operates four Subway franchise outlets.

It is alleged Mrs Dawe was centrally involved in underpaying 11 employees at the four Subway outlets a total of AU$56,585 between 2006 and 2011.

It is alleged the majority of the underpayments are the result of the employees, who were aged between 15 and their early 20s, being underpaid the minimum hourly rate.

Some employees were also underpaid annual and personal/carer’s leave entitlements and payment in lieu of notice of termination. The biggest individual underpayment alleged is AU$18,512.

Mrs Dawe was allegedly involved in committing multiple breaches of workplace laws. She faces maximum penalties of up to AU$6,600 per breach.

Fair Work Ombudsman Nicholas Wilson says a decision to prosecute was made because of the significant amount involved for vulnerable, young workers and the employer’s failure to rectify the matter.

The Fair Work Ombudsman is also seeking a Court Order that any penalty imposed on Mrs Dawe go towards rectifying the alleged underpayments of the employees.

A directions hearing is listed for June 22 in the Federal Magistrates Court in Sydney.