The Fair Work Ombudsman has secured penalties totalling $40,000 against a former United Petroleum outlet operator in Melbourne and her husband, after a court found serious breaches involving underpayment and false payroll records.
The Federal Circuit and Family Court imposed a $28,000 penalty on Bharathi Karnati, a sole trader and former commission agent of a United Petroleum outlet on Leakes Road in Truganina, in Melbourne’s west. Her husband, Ravikanth Baddam, who managed the outlet, was fined $12,000.
As per Fair Work statement, the court found Ms Karnati underpaid an Indian international student working as a casual console operator, paying flat rates of no more than $14 per hour when the worker was entitled to at least $28.38 per hour under the Vehicle Repair, Services and Retail Award 2020.
The worker was underpaid a total of $2,337 between December 2020 and January 2021.
The court also found Ms Karnati knowingly provided false or misleading pay slips to Fair Work inspectors during the investigation, overstating the wages actually paid. She also failed to maintain proper records or issue compliant pay slips.
Mr Baddam was found to have been intentionally involved in the breaches.
Judge Amelia Edwards described the conduct as serious and deliberate, noting the false records were designed to conceal non-compliance and hinder regulatory oversight. The court also found the worker had been left with less than half of his lawful entitlements, and that poor record-keeping affected his ability to access rental housing and financial services.
Acting Fair Work Ombudsman Rachel Volzke said the case highlighted the vulnerability of migrant workers and the importance of strong enforcement action.
The Fair Work Ombudsman has now secured penalties in five separate cases involving former United Petroleum-branded operators, with total penalties exceeding $270,000 following investigations across multiple states.
Authorities say inspections across 20 outlets were conducted as part of a wider compliance investigation into the fuel retail network.
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