A judge has fined a United Petroleum franchisee $179,221 for underpaying migrant workers at Tasmanian service stations.
Following an investigation by the Fair Work Ombudsman, penalties have been imposed on KLM Foods Pty Ltd and its sole director, Loveleen Gupta, for underpaying four migrant workers at United Petroleum-branded outlets in Tasmania.
The penalties stem from underpayments totalling $20,230 over two months at service stations in Sandy Bay and Kingston between December 2020 and February 2021. The workers, all visa holders from India and Bangladesh, were paid unlawfully low flat rates and were not compensated for extra hours worked.
KLM Foods received a penalty of $135,143, while Mr Gupta was fined $44,078. The company also issued false pay slips and provided misleading timesheets to the FWO. In addition, one worker was required to make an unlawful repayment of $6,353 to KLM Foods in June 2023, further breaching workplace laws.
Fair Work Ombudsman Anna Booth condemned the breaches.
“We have zero tolerance for unlawful cashback arrangements that attempt to hide underpayments. All employees in Australia have the same workplace rights, regardless of their visa status, and must be paid in line with lawful minimum pay rates.”
Judge Karl Blake found that KLM Foods and Gupta had “blatantly disregarded” workplace laws and showed no remorse. He noted that some affected workers were new to Australia and unfamiliar with their entitlements, making them particularly vulnerable.
“There is a need to send a strong and clear message to ensure that the type of conduct disclosed in this case is not repeated.”
The penalties are part of a broader FWO investigation into the United Petroleum network. The regulator has audited 20 outlets across multiple states, leading to additional legal action against operators in South Australia and Queensland. Further enforcement actions remain possible.
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