Adelaide real estate directors face illegal cashback scheme allegations
Two former directors and a former bookkeeper of an Adelaide real estate company are facing allegations they underpaid a migrant worker.
Two former directors and the former bookkeeper of an Adelaide-based real estate company are facing legal action for allegedly implementing an unlawful cashback scheme.
The Fair Work Ombudsman alleges the former directors and part-owners of Ezytenant Pty Ltd, which operated the website www.ezytenant.com.au, asked a migrant worker – who was a temporary graduate visa at the time and aged in his 20s – to repay his wages.
One allegation is that the worker, a Chinese national, was told he needed to re-pay the cash to assist Ezytenant with financial difficulties or his employment would be terminated.
The worker was allegedly required to withdraw his weekly wages in cash and pay it to the former directors.
Geng Xu and Jayce Richardson, former directors and part-owners of Ezytenant Pty Ltd, and Chen Sun, a former employee who performed bookkeeping duties for the company, are facing Federal Circuit and Family Court this month.
It is alleged that in total, the worker was required to re-pay $10,702 of his wages between April and July, 2020.
The Fair Work Ombudsman also alleges Sun was involved in issuing the worker with false and misleading pay slips during his employment that gave the impression he was being paid lawfully.
Fair Work Ombudsman Anna Booth said the litigation highlighted a “serious conduct” that allegedly deprived a “a vulnerable migrant worker … of their entitlements’.
“Unlawful cashback schemes can be some of the most blatant and appalling forms of underpayment,” Booth said.
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“Employers need to be aware that taking action to protect potentially vulnerable workers, including visa holders, is among the Fair Work Ombudsman’s top priorities.”
The Fair Work Ombudsman is seeking penalties of up to of up to $133,200 against Xu, Richardson and Sun.
Sun faces an additional penalty of up to $13,320 for the alleged pay slip contravention.
Ezytenant Pty Ltd has now been liquidated and deregistered.
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