The Fair Work Ombudsman has launched a prosecution against Pack One & Post and its director John Watts, alleging that 21 workers were underpaid a total of $359,963 between 2006 and 2009. A directions hearing was scheduled for the Federal Magistrates Court today.

The employees were female immigrants with limited English who performed manual handling duties related to assembly, packaging and posting, said the Ombudsman.

"The employees were allegedly paid flat rates of between $11 and $13 per hour, resulting in underpayment of their minimum hourly rates, casual loadings, overtime rates and public holiday penalty rates. Laws relating to minimum engagement periods were allegedly also breached."

Watts told ProPrint he was working with the Ombudsman to find a resolution.

"There are different points – some we accept and some we don't. We accept there have been some underpayments, but we've been working with the Fair Work Ombudsman to resolve it.

"Because it's going to court, I can't comment on the case, but I can say we've been cooperating 100% with the Fair Work Ombudsman and complying with every request, so I'm surprised they decided to take it to court."

The Ombudsman said Pack One & Post had repaid about $100,000 and that it would seek a court order for the balance to be repaid.

[Related: More NSW news]

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