Court action over alleged $62,000 underpayment of Northern NSW security guards

7 March 2013

Note: Reference to prosecution in this media release is a general reference to the FWO commencing proceedings for the imposition of civil penalties and should not be taken to be a reference to criminal proceedings.

The Fair Work Ombudsman has launched a prosecution against a Northern NSW security company, alleging it underpaid seven security guards a total of more than $62,000.

Facing court is Alarcorp Pty Ltd - which trades as Summerland Security and is based at Goonellabah, near Lismore - as well as company director and majority-owner Raymond Eric Bryant.

It is alleged the company underpaid seven security guards a total of $62,616 between December, 2006 and February, 2011.

It is alleged the employees were underpaid their minimum hourly rates, weekend penalty rates, overtime rates and an allowance payable when called back into work after having left for the day.

One employee was allegedly also underpaid an allowance payable for being required to carry a gun.

It is alleged the employees were underpaid amounts ranging from $2401 to $15,770.

Fair Work Inspectors discovered the alleged breaches when they investigated complaints lodged by workers. Alarcorp subsequently commenced back-paying employees.

Fair Work Ombudsman, Nicholas Wilson, said the significant amount involved and the failure to fully rectify the alleged underpayments promptly were key factors in the decision to prosecute.

Mr Bryant was allegedly involved in Alarcorp committing several breaches of workplace laws. Mr Bryant faces penalties of up to $6600 per breach and the company faces penalties of up to $33,000 per breach.

The Fair Work Ombudsman will also seek a Court Order for any outstanding wages owed. A directions hearing is scheduled in the Federal Magistrates Court in Sydney on April 8.

Any workers who believe they have been underpaid by Alarcorp or any other employer should contact the Fair Work Infoline on 13 13 94 for advice and assistance. A free interpreter service is available on 13 14 50.

Information to assist employers and workers is also available at www.fairwork.gov.au.

Media inquiries:

Ryan Pedler, Assistant Director, Media & Stakeholder Relations,
(03) 9954 2561, 0411 430 902
ryan.pedler@fwo.gov.au

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