Phone accessories reseller Phone Collection fined for underpaying staff

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Phone accessories reseller Phone Collection fined for underpaying staff

Updated 9:54am 6.12.2016: to include comments from Phone Collection


Mobile phone accessories reseller Phone Collection has been fined $20,000 for failing to pay minimum hourly rate, penalty rates, annual leave loading and superannuation contributions to an employee.

Employee Jingxi Bai lodged a complaint with the Fair Work Ombudsman about the Melbourne-headquartered reseller and repair shop, which has seven mobile phone kiosks in shopping centres in Victoria and South Australia and employs approximately 40 employees.

After being made aware of the problem in May 2015, Phone Collection did back pay Bai $4,028 in two separate payments to cover the difference, but the company was still fined.

A spokesperson for Phone Collection told CRN that there had been a miscommunication between employee and the reseller. The spokesperson said it settled with the employee within 48 hours of knowing about the problem.

"The employee had some outstanding bonus to collect, however, he didn't come to us directly, instead he contacted Fair Work directly," the spokesperson said.

Bai had been promised a minimum hourly rate of $15.00 plus $6.50 "bonus hourly on achieving necessary sales". However, the employee was being paid an average of $13.16 an hour with no penalty rates for late shifts or working on a Sunday or public holiday.

During the case, which was heard at the Melbourne Federal Court, Phone Collection was also found to have failed to collect the employee's tax file number and his superannuation details. The employer also failed to provide Bai with pay slips within one working day of payment.

The court ruled that Kam Man Yau, the sole director and secretary of Phone Collections at the time of the contravention, should also pay $3,000.

Bai worked at Phone Collection's Express Repair kiosk at the Bayside Shopping Centre in Frankston, Victoria.

The company did not respond to CRN's enquiries by time of publication.

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