Waterfall Feedlot Fined $130,000

May 12, 2017

The Waterfall Feedlot feedlot at Boonara – just south of Tansey – has attracted fines totalling $130,000 in the Federal Court after allegations that workers were not paid correctly.

The Fair Work Ombudsman took action against Waterfall Feedlot Pty Ltd and owner/manager Robert Maudsley, claiming foreign backpackers were not paid overtime entitlements despite some working more than two months straight without a day off.

Maudsley was penalised $20,000 and Waterfall Feedlot a further $110,000.

The court was told Maudsley and his company underpaid six backpackers a total of $38,254 between January, 2014, and September, 2015.

The backpackers, five men and one woman in their 20s from the UK and Ireland, were in Australia on a 417 working holiday visa when they were underpaid.

They went to work on Maudsley’s farm after responding to advertisements on the Gumtree website because they wanted to qualify for a second-year extension to their visas.

Fair Work Ombudsman inspectors investigated after the backpackers lodged requests for assistance.

Inspectors discovered the backpackers had worked up to 13 hours a day, six or seven days a week, but were mostly paid a flat rate of $17 an hour for all hours worked, resulting in a significant underpayment of their overtime entitlements.

Three of the backpackers did not have a single day off during their employment, working 64, 80 and 88 consecutive days respectively .

Under the Pastoral Award 2010, the backpackers should have been paid up to $37.96 per hour for overtime work. Minimum hourly rates for ordinary hours, casual loading, public holiday pay and leave entitlements were also underpaid.

The company was also penalised for failing to make a copy of the Pastoral Award 2010 available to employees.

The six backpackers were underpaid between 28 and 51 per cent of their total minimum entitlements. The largest individual underpayment was $11,592.

The backpackers have now been back-paid in full.

The Fair Work Ombudsman’s office said the contravention occurred despite Maudsley being informed of his obligations under federal workplace laws during the course of investigations dating back to 2006 that resulted in recovering $4000 for four workers, including two backpackers.

Fair Work Ombudsman Natalie James said the penalties imposed by the Court sent a message that there were serious consequences for exploiting vulnerable overseas workers.

“Employers who think they can get away with just back-paying workers who complain and then refusing to change their habits should think again,” Ms James said.

“We take the mistreatment of overseas workers very seriously because we know they can be vulnerable if they are not fully aware of their workplace rights in Australia and are often reluctant to complain.

“Minimum wage rates apply to everyone in Australia – including visa-holders – and they are not negotiable.

“I am particularly disappointed that in this instance we have had to proceed to litigation given the employer was previously put on notice through their interactions with my agency.”