The Fair Work Ombudsman has successfully secured penalties totalling $179,221 after uncovering wage theft at two United Petroleum-branded service stations in Tasmania. The case exposed the exploitation of four migrant workers, who were collectively short-changed by $20,230 over just two months between 2020 and 2021.
KLM Foods Pty Ltd, the operator of the affected outlets in Sandy Bay and Kingston, was hit with a significant fine of $135,143. Additionally, Loveleen Gupta, the company’s sole director and also the manager of Vizaan Pty Ltd, was personally penalised $44,078 for his direct involvement in the breaches.
The workers—young visa holders from India and Bangladesh—were employed as console operators but were paid unlawfully low flat rates of between $16 and $23 per hour. These wages fell far short of the legal minimum, denying them the overtime and penalty rates they were entitled to. One of the employees, aged just 19-20 at the time, was among the most severely underpaid.
Although KLM Foods and Vizaan later repaid the missing wages following an investigation by the Fair Work Ombudsman (FWO), further misconduct was uncovered. One worker was forced to hand back $6,353 in an illegal cashback arrangement—a clear attempt to sidestep the legal requirements.
In addition to underpaying its staff, KLM Foods was found to have falsified payslips and timesheets, breaching workplace record-keeping laws under the Fair Work Act.
Federal Circuit and Family Court Judge Karl Blake condemned the company’s actions, highlighting the cashback scheme as particularly exploitative.
Fair Work Ombudsman Anna Booth reinforced the severity of the case, stating that all workers, regardless of their visa status, must receive their full legal entitlements. She also issued a stern warning to employers, making it clear that fabricating records would result in heavy penalties. FWO investigators, she assured, would continue scrutinising wage records to uncover any further wrongdoing.
This case is part of a wider investigation into United Petroleum-branded outlets across Australia. The FWO has pursued multiple operators for breaches of workplace laws, recovering over $6,500 for affected workers at 20 different sites. Despite some businesses attempting to escape accountability by going into liquidation, regulators remain committed to ensuring workers receive what they are owed.
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