Pizza shop operator faces court for allegedly paying employees just $9 per hour

Posted by AFN Staff Writers on 27th January 2012

The Fair Work Ombudsman will prosecute the operators of an Eagle Boys pizza outlet in regional New South Wales for allegedly paying its employees just AU$9 an hour.

Facing court is Stacborn Pty Ltd, which runs an Eagle Boys franchise at Cessnock.

Court documents allege the company underpaid 17 delivery drivers and two shop assistants a total of AU$48,905 between October, 2008 and June, 2010. Five of the staff were under 18 at the time.

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

A male employee in his 20s was allegedly underpaid $11,478. 

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.

The Fair Work Ombudsman alleges Stacborn Pty Ltd committed several breaches of workplace laws. The maximum potential penalty per breach is $33,000. The Fair Work Ombudsman is also seeking a Court Order for back-payment of the money allegedly still owed to the workers.

The case is listed for a directions hearing on February 14 2012 in the Federal Magistrates Court in Sydney.