Federal Circuit and Family Court has fined an Indian grocery store operator in Darwin over $100,000 for breaching workplace laws involving an Indian migrant worker. Om Shiva Foods Pty Ltd, which operates as Wulagi Supermarket, and its sole director, Vinay Madasu, were found guilty of failing to comply with key employment regulations.
The court imposed a penalty of $39,960 against the company, alongside an additional $7,992 fine against Mr Madasu. These fines were levied for Om Shiva Foods’ failure to comply with a Compliance Notice issued by the Fair Work Ombudsman (FWO), which required them to calculate and back-pay a casual retail assistant’s entitlements. The employee, an Indian national on a temporary graduate visa, worked at the supermarket between February 2020 and August 2021.
In addition to the fines, the court has ordered Om Shiva Foods to pay the Indian migrant worker the full outstanding amount of $68,970 in underpaid wages. To date, only a partial payment has been made.
Fair Work Ombudsman Anna Booth emphasised that businesses which disregard Compliance Notices face serious consequences. “When Compliance Notices are not followed, we will continue to take legal action to protect employees,” Ms. Booth stated, adding, “Employers who fail to act on these notices risk substantial penalties and back-pay orders.”
She further noted the gravity of the case, highlighting the significant amount underpaid over an 18-month period. “The underpayment of more than $68,000 is significant, and it’s disappointing that litigation was required to ensure the worker received what they were owed,” Ms. Booth said.
The FWO initiated an investigation following a request for assistance from the affected employee. A compliance notice was issued to Om Shiva Foods in October 2022 after a Fair Work Inspector determined the worker, and Indian migrant, had been underpaid their basic wages, as well as penalty rates and overtime for weekend and public holiday shifts under the General Retail Industry Awards 2010 and 2020.
Judge Anastasis Liveris, who presided over the case, expressed concern over the severity of the situation. He emphasised the need for deterrence, not just for Om Shiva Foods, but for other small businesses in the supermarket industry.
“There is a need for general deterrence and to ensure compliance with minimum standards… businesses must take their record-keeping and compliance obligations seriously,” Judge Liveris remarked.
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