Hundreds of West Australian workers were robbed a total of at least $400,000 in unpaid wages last financial year, according to the Fair Work Ombudsman.  

Inspectors scrutinised employment records of 609 WA businesses and recouped $402,427 in money that should have been paid to employees.  

Horticulture, cleaning and insulation installation were the worst offending industries, while the ombudsman also targeted sham contracting and led five regional campaigns in Rottnest Island, Kalgoorlie, the Peel region, Avon Valley and Perth supermarkets.


Nationally, 6779 businesses were audited and a total of $4.7 million was recovered for 7613 employees.

That was up 11 per cent compared to 2009-10.

In one of the worst cases, a WA construction company received a record $430,000 fine for paying foreign workers only $3 per hour after sponsoring them on 457 visas.  

The five exploited tradesmen were brought out from China by Kentwood Industries and lived in cramped conditions with other employees, including up to three men sharing a bedroom, in a house rented by the company.

The Federal Court in Perth heard in May that the men were sometimes forced to sleep on the floor and worked up to 11 hours a day, six to seven days a week without rostered days off and were not paid penalty rates or annual leave entitlements.  

The qualified and experienced workers were underpaid amounts ranging from $28,000 to $69,000 each.  

The company's managing director and part-owner Jian Yang Zhang, who was described as the mastermind of the scheme, also was fined $24, 600.

In another serious case, three Chinese cooks who worked at Jacaranda Deli and Cafe in High Wycombe, in Perth's east, were owed a total of $11,000 in wages.

Two companies and two directors associated with the café were fined a record $28,000 after a hearing in the Federal Court.

A dozen Perth real estate agency employees were back-paid almost $150,00 in total for unpaid annual leave, redundancy and  over-time entitlements, following an investigation by the Fair Work Ombudsman that culminated in March.

Among the employees was a real estate investment manager whose employer had unlawfully deducted $22,800 from their pay, three South Lake real estate agents who were owed a total of $24,000 in outstanding leave entitlements, and a West Perth book-keeper who was reimbursed $15,000 for unpaid annual leave.

Fair Work Ombudsman Nicholas Wilson said targeted compliance work carried out by his office aimed to ensure workers were protected and received their full pay.

"Many employers underpay as the result of a lack of information or they make mistakes interpreting the information they have," he said.

"However, some deliberately take the opportunity to keep for themselves what is rightfully owed to their employees, and our proactive work helps improve understanding among employers of their workplace responsibilities.

"We aim to improve compliance with workplace laws through an integrated approach that combines positive motivators, such as advice and education, with deterrents such as investigation and litigation activities," Mr Wilson said.

Results of Fair Work Ombudsman campaign activities are posted online at www.fairwork.gov.au

Employees with concerns can contact the Fair Work infoline on 13 13 94.

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