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Business owner fined for abusing JobKeeper scheme
A Queensland business owner has been punished for abusing the JobKeeper scheme.
Business owner fined for abusing JobKeeper scheme
A Queensland business owner has been punished for abusing the JobKeeper scheme.
The Fair Work Ombudsman has secured a $14,000 penalty in court against the operator of a Queensland transport business for allegedly requiring an employee to repay his JobKeeper payments.
The Federal Circuit and Family Court imposed the penalty against Khan Andrew Buchanan, a sole trader who operates RiverCity Bus Service, in response to Mr Buchanan’s conduct in relation to a bus driver he employed on a casual basis.
According to the Fair Work Ombudsman, for the period between March and September 2020, Mr Buchanan received fortnightly $1,500 gross JobKeeper payments from the government for the driver and transferred these payments in full, minus relevant tax, to the driver’s bank account.
However, since the payments were more than the driver’s usual fortnightly wage, Mr Buchanan breached the Fair Work Act by requiring his employee to pay back the difference on a weekly basis.
In total, Mr Buchanan stripped the employee of $5,805 in JobKeeper payments, plus an additional $465 he shaved off a fortnightly payment in September.
Mr Buchanan has since rectified the underpayments in full.
Commenting on the case, Fair Work Ombudsman Sandra Parker said the regulator was prepared to take action to uphold the integrity of government programs.
“The deliberate failure to follow the law on how publicly funded JobKeeper payments had to be used is disappointing. Cashbacks are treated particularly seriously by the Fair Work Ombudsman as they can imply a deliberate attempt by an employer to mislead the regulator. We will not tolerate any employers requiring workers to pay back any of their wages except where it is allowed by law,” Ms Parker said.
“Any employees with concerns about their pay or entitlements should contact us for free assistance,” she added.
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