International student says boss told her she would be paid less as a non-Australian
Date
January 24, 2016
The Age
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An international student in Melbourne says her boss told her she would be paid less because she is "not an Aussie", and threatened to cancel her visa if she complained.
The student, 27, from Nepal, and her co-worker from India were exploited and underpaid tens of thousands of dollars while working at a health food store in Melbourne's South Wharf.
As the nation prepares to celebrate Australia Day on Tuesday, the case has become the latest to draw attention to abuse of foreign workers, which the union movement labels a "national shame".
Investigations by the Fair Work Ombudsman have revealed the Nepalese student was paid an illegal flat rate as low as $12 an hour at the takeaway salad and sandwich store Health Express. She said the owner, Jeffrey Herscu, had "made it clear" this was because she was from overseas.
"When I came for the interview, he said that I will give you the job, but as you are not an Aussie, I will be paying you a lesser amount," the student said in a recorded interview with the Fair Work Ombudsman.
"It was really embarrassing for me ... I had Australian friends who were doing the same kind of work, but were getting paid over $20 an hour."
The student, a casual employee, was short-changed more than $23,500 between September 2013 and March last year.
And the Indian student, 31, was underpaid more than $27,300 after receiving flat rate wages as low as $16 an hour.
Under the fast-food industry award, the pair were entitled to $23 an hour for normal shifts, up to $27 on Saturdays, $32 on Sundays and almost $51 on public holidays.
After intervention by the Fair Work Ombudsman, Mr Herscu's Rapid City Pty Ltd, which runs Health Express, has agreed to back-pay $50,000 to his former employees.
Mr Herscu signed an "enforceable undertaking", seen by Fairfax Media, in which he agreed to apologise for the conduct and make a $5000 donation to the Western Community Legal Centre to help protect the workplace rights of vulnerable employees.
The undertaking to the Fair Work Ombudsman also requires audits of workplace practices for three years and the introduction of programs to train managers about workplace responsibilities.
Fairfax Media has sought comment from Mr Herscu.
Fair Work Ombudsman Natalie James said the agency was working hard to stamp out exploitation, particularly of overseas workers, and build a "culture of compliance" in Australian workplaces.
"It is important that there is a fair, competitive environment for employers who are doing the right thing by creating a level playing field in relation to business costs," she said.
"Employers simply cannot undercut the minimum lawful entitlements of their employees based on what they think the job may be worth, what the employee is happy to accept, what other businesses are paying, or what the job may pay in their country of origin."
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