The Fair Work Ombudsman has begun taking legal action against a NSW security contractor for allegedly underpaying 14 security guards almost $94,000.
Northcoast Security Services Group Pty Ltd and Kuldeep Chouhan, former Northcoast director and part-owner, are to face the Sydney Federal Circuit Court for underpaying guards in the Coffs Harbour area $93,779 for work in 2012 and 2013.
The underpayments were allegedly the result of payments registering rates as low as $18 an hour, less than half the $40 an hour certain weekend, public holiday, night and overtime rates they should have received under the Security Services Award.
The FWO says that two guards were allegedly underpaid $29,650 and $23,731 respectively, while other underpayments range from $294 to $8420.
The legal action comes as result of guards contacting the FWO with concerns of underpayments, concerns that Northcoast Security Services and Mr Chouhan failed to respond to. The FWO investigation has also brought to light allegations of breaches relating to record-keeping laws, underpaid broken shift allowances and unlawful deductions from employee wages.
If convicted, Mr Chouhan could face a fine of up to $10,200 per contravention and Northcoast Security Services could be penalised up to $51,000 per contravention.
