Shafi Investments Pty Ltd, the former operator of an Ali Baba Kebabs and Wraps franchise has been brought to the Federal Magistrates Court in Melbourne for allegedly underpaying an employee more than $50,000.
The Fair Work Ombudsman claims that the shop’s former owners Younus Mohammed and Mahmood Mohammed, were involved in Shafi Investments underpaying the worker between April 2008 and May 2009 when the employee was in Australia as a dependant on his wife’s student visa. It is alleged that he usually worked for about 70 hours a week but was not paid any wages for three months and then paid a flat rate of only $290 a week, instead of the alleged entitlement of more than $1000 per week.
The franchisor, Ali Baba Lebanese Cuisine, has claimed that they were unaware of the breach until now and have advised its franchisees to pay their staff in accordance with the relevant State or Federal award. Furthermore, the franchisor stated that they take their obligation as a franchisor very seriously and regularly informs their franchisees about their obligations under the Ali Baba Enterprise Agreement and the minimum wage.
To find out how Armstrong Lawyers may assist you in relation to your franchising needs, feel free to browse our Franchising page. If you require further information in respect of an employment matter, please visit our Employment Matters page.