Lycamobile fined over £13k for employee exploitation

Lycamobile fined over £13k for employee exploitation

The Australian wing of global SIM card provider Lycamobile has been penalised $25,000 AUS (£13497.44) for exploiting an administrative employee - reports.

After coming under fire, the company admitted underpaying the worker - at its office in Parramatta, New South Wales - a total of $5,264 in overtime privileges.

The employee was habitually asked to work more than 38 hours per week, sometimes working on Saturdays between 2012-2015.

However, the unnamed employee did not receive full overtime privileges under the Telecommunication Services Award 2010.

And, according to Ombudsman Sandra Parker, the regulator investigated Lycamobile following a request for further assistance at work from the employee in question.

“Under Australia’s workplace laws, employers are legally obliged to pay employees their full minimum entitlements,” said Parker.

“The FWO is prepared to take enforcement action if a business disregards that obligation.” Parker added that it is “unacceptable” for an employer to continue to underpay employee entitlements after being formally sanctioned by the Court.

“This penalty sends a clear message that repeat breaches of workplace laws will be met with a serious response.”

Judge Sylvia Emmett described the underpayment as the result of Lycamobile’s “recklessness rather than mere accident” and that it was “egregious” that the company had failed to take steps to ensure compliance after being penalised five years ago.

“I accept that a meaningful penalty is one that sends a message to employers and the public at large that repeat offending is serious and should be treated as such by the Court,” she said.

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