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Security International Services Pty Ltd (Read 21502 times)
Reply #4 - 29. Nov 2015 at 16:35

dreadman   Offline
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Quote:
Security company fined over $60,000

20 November 2015


A national security company has been fined tens of thousands of dollars for underpaying one of its own employees and turning a blind eye to a sub-contractor doing the same thing.

The Federal Circuit Court in Brisbane has imposed penalties totalling $60,400 against Security International Services Pty Ltd (SIS).

Judge Michael Jarrett fined the company $40,000 for underpaying a Gold Coast security guard $7632 between November, 2013 and February, 2014.

He also fined SIS a further $20,400 for knowingly allowing one of its contractors, GRI Global Pty Ltd, to underpay one of its guards $11,189.

SIS held a contract to provide security at Queensland Curtis Liquefied Natural Gas project construction sites in the Chinchilla/Dalby area between September, 2013 and January, 2014.

SIS in turn sub-contracted to GRI Global, and admitted in Court it was an accessory to the underpayment, which was rectified last year.

GRI Global has since gone into liquidation.

Judge Jarrett made Orders for SIS to conduct an audit covering 30 per cent of its employees and to provide the findings to the Fair Work Ombudsman.

Fair Work Ombudsman Natalie James says companies tendering for security services need be alert to the non-compliance risks associated with selecting low-cost providers.

Ms James says the Agency is actively, and successfully, pursuing accessories to contraventions of workplace laws via Section 550 of the Fair Work Act.

She noted that companies like Myer, 7-Eleven, Cadbury, Mars and Coles had all recently been associated with the controversy of exploited workers in the media, even though none was the direct employer of the workers.

"However, as established and profitable enterprises with significant market share, the public expects more of them than a response that they are not directly responsible for those workers – and that becomes an entry point for us to talk to them about moral and ethical supply chains and how we can help them take steps to ensure compliance with workplace laws across their worksites," Ms James said.

In a keynote address last year titled "Risk, Reputation and Responsibility", Ms James signalled to the business community that she would hold employers accountable for business practices which undermined compliance with federal workplace laws.

She flagged increasing use of Section 550 to go up and down the supply chain to scrutinise sub-contracting arrangements, warning that companies found to be profiting from underpaying their employees faced a "very real risk to reputation and impact on their bottom line".

"If a business is interested in looking down the supply chain and taking responsibility for what is going on within it, then the Fair Work Ombudsman would love to have a conversation about how we can help," she told an Australian Labor and Employment Relations Association (ALERA) conference.
 

"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
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Reply #3 - 05. Oct 2015 at 14:39

dreadman   Offline
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Quote:
Security company faces Court for second time

2 October 2015

A national security company is again facing Court action after allegedly underpaying a Gold Coast worker more than $7000 in just 10 weeks.

The Fair Work Ombudsman has commenced legal proceedings against Security International Services Pty Ltd in the Federal Circuit Court in Brisbane.

The company allegedly underpaid the security guard a total of $7632 between November, 2013 and February, 2014.

Security International Services allegedly made irregular payments to the worker that were not sufficient to meet his minimum entitlements under the Security Services Industry Award.

The Fair Work Ombudsman alleges the worker was underpaid his minimum hourly rate and penalty rates for night, weekend and overtime work.

Underpayment of annual leave entitlements and contravention of pay-slip laws is also alleged.

The Fair Work Ombudsman investigated after the worker contacted the Agency for assistance.

Fair Work Ombudsman Natalie James says the underpayment has now been rectified.

However, litigation will proceed given the significant amount of the alleged underpayment over such a short period of time.

Security International Services faces maximum penalties of up to $51,000 per contravention.

The Fair Work Ombudsman is also seeking a Court Order that Security International Services commission an audit of its compliance with workplace laws, report the results to the Agency and rectify any underpayments discovered.

A directions hearing is listed for October 7.

It is the Fair Work Ombudsman’s second legal action against Security International Services.

The Agency commenced legal action against the company last year, alleging it breached workplace laws by knowingly allowing one of its contractors, GRI Global, to underpay a Queensland security guard more than $11,000.

The matter is still before the Federal Circuit Court.


http://www.fairwork.gov.au/about-us/news-and-media-releases/2015-media-releases/...
 

"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
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Reply #2 - 01. Jun 2015 at 23:05

dreadman   Offline
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"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
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Reply #1 - 01. Jun 2015 at 22:53

dreadman   Offline
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Quote:
The Fair Work Ombudsman has previously cautioned that security services costing less than an average $24 an hour will likely result in the employee being underpaid.

Later this year, inspectors will conduct audits aimed at identifying unlawful practices among those companies providing security services to local councils.

Ms James says employers also need to realise that classifying a worker as a contractor and asking them to obtain an Australian Business Number (ABN) does not automatically make them a contractor in the eyes of the law.

“When our inspectors suspect misclassification or sham contracting is occurring, we will look carefully to determine the true state of affairs,” she said.

Employers and employees seeking assistance can visit www.fairwork.gov.au or contact the Fair Work Infoline on 13 13 94.

A free interpreter service is available by calling 13 14 50.


http://www.fairwork.gov.au/about-us/news-and-media-releases/2015-media-releases/...
 

"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
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01. Jun 2015 at 22:52

dreadman   Offline
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Quote:
Security companies to face Court after employee allegedly underpaid over $11,000

29 May 2015

A national security company knowingly allowed one of its contractors to underpay an employee more than $11,000, the Fair Work Ombudsman alleges.

Facing the Federal Circuit Court in Brisbane is Security International Services Pty Ltd and another security services company, GRI Global.

Security International Services held a contract to provide security at Queensland Curtis Liquefied Natural Gas project construction sites in the Chinchilla/Dalby area operated by Thiess Pty Ltd between September, 2013 and January, 2014.

Security International Services allegedly engaged GRI Global to supply security guards and agreed to pay $21 an hour.

One of the security guards employed by GRI Global was allegedly paid a flat weekly rate of $1500 for working from 6pm to 6am seven days a week on 21-days-on, seven-days-off roster.

The Fair Work Ombudsman alleges that this amount was not sufficient to cover the worker’s minimum entitlements, including penalty rates for night, weekend, overtime and public holiday work under the Security Services Industry Award.

The worker was allegedly underpaid $11,189 over a period of four months.

The Fair Work Ombudsman alleges that GRI Global contravened workplace laws by underpaying the employee, but Security International Services is culpable as an accessory because it knew the flat rate being paid was not enough to cover minimum Award entitlements.

GRI Global also allegedly contravened sham contracting laws by misrepresenting to the worker that he was a contractor, not an employee.

Pay-slip contraventions are also alleged.

The Fair Work Ombudsman investigated the matter after the worker contacted the Agency for help. The alleged underpayments were subsequently rectified.

Fair Work Ombudsman Natalie James says GRI Global has previously had to reimburse underpaid employees more than $70,000.

And the company had been put on notice in the past about the need to pay employees their full lawful entitlements and to keep proper employment records.

The Fair Work Ombudsman alleges multiple contraventions of workplace laws in relation to the latest underpayment matter.

Security International Services and GRI Global each face penalties of up to $51,000 per contravention.

Ms James says employers need to be aware that they risk breaching workplace laws if they engage contractors to supply labour and turn a blind eye what the workers are being paid.

“Security services is one highly cost-competitive industry in which organisations need to be alert to the non-compliance risks associated with selecting low cost providers,” she said.

“Sometimes the lowest quote can have the highest cost if it ultimately damages the organisation’s reputation and exposure to financial penalties for being an accessory to contraventions of the Fair Work Act.”


 

"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
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