Vaping company in court on cashback allegation
The Fair Work Ombudsman has commenced legal action against the operators of a vaping products business in Sydney for allegedly requiring a Chinese worker to enter into an unlawful cashback arrangement.
Facing court are The Easy Vaping Company Pty Ltd, which trades as ‘Easy Vape Distribution’ and ‘Easy Vape Australia’, the company’s sole director Kate Dillon Chan and her husband Edward Chan, the company’s operations and finance manager.
The Fair Work Ombudsman investigated after receiving a request for assistance from a Chinese worker who was sponsored by The Easy Vaping Company, on a 457 skilled work visa, to work as a marketing specialist between 2017 and 2020.
Fair Work inspectors allegedly discovered the worker had been unlawfully required to pay back $13,000 of his wages and entitlements between July 2017 and March 2018.
Ms Chan allegedly communicated the cashback requirement to the employee in private in the ‘pick and pack room’ of The Easy Vaping Company’s business premises in Arncliffe.
It is alleged that several times after the worker received wages into his account, he was required to withdraw amounts ranging from $1000 to $2000 from an ATM and pay the cash to Mr Chan.
It is alleged that The Easy Vaping Company pressured the worker to comply with the cashback requirement by telling him the company would sponsor his 457 visa but was unable to afford to pay him the $65,000 minimum annual wage that applied to his position under Australian law.
The company back-paid the worker in full last year, after being contacted by the FWO.
Acting Fair Work Ombudsman Mark Scully said matters that involve the alleged underpayment of visa holders are treated particularly seriously, as migrant workers may be vulnerable to exploitation in the workplace.
“The Fair Work Ombudsman will use all powers available to us to hold business operators to account when we encounter serious allegations that involve vulnerable workers.”
“All workers have the same rights in Australia regardless of nationality or visa status and anyone with concerns about their pay or entitlements should contact the FWO for free assistance,” Mr Scully said.
The FWO alleges the cashback requirement breached the Fair Work Act and is seeking penalties against The Easy Vaping Company Pty Ltd, Ms Chan and Mr Chan. The company faces a penalty of up to $63,000 and Ms and Mr Chan each face a penalty of up to $12,600.
A directions hearing is listed in the Federal Circuit and Family Court in Sydney on 3 June 2022.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50. Small businesses can find targeted resources at the Small Business Showcase.
