FWO alleges Perth security guards were ‘deliberately’ underpaid more than $900k

Allegations of “serious contraventions” have been placed against the former operator of a Perth security company.

The Fair Ombudsman has commenced legal action over what it has alleged to be “serious contraventions” against Sergey Stanislavovich Navasardyan, the former owner and operator of Perth security company Griffon Alpha Group.

The regulator alleges that Navasardyan deliberately underpaid a total of 44 security guards – some of whom were non-English speaking visa holders – a total of $911,292 between December 2019 and May 2022.

With the nature of the allegations being serious contraventions, if true, they will attract 10 times the maximum available penalties that would ordinarily apply. This would apply as the FWO alleges that Navasardyan’s action was deliberate.

The company, Griffon Alpha Group, employed the workers on a casual basis to work at a variety of events in differing venues, such as sporting events, concerts, shopping centres, nightclubs and commercial construction sites. The FWO discovered the alleged contraventions after performing an audit back in 2021.

According to the FWO, the workers were primarily paid flat rates between $21 and $25 an hour regardless of the situation in which they were performing their duties, thus missing out on a number of entitlements.

One alleged example is that more than half of the total underpayments relate to work performed on Sundays, meaning the security guards should’ve earned $49 to $51 per hour.

“Employers who allegedly deliberately fail to provide their workers large parts of their lawful wages risk facing significant penalties, which have never been higher,” said Fair Work Ombudsman Anna Booth, who proclaimed that the agency would be using all its powers to hold employers accountable for deliberate acts of underpayment.

“Paying workers unlawfully low flat rates is simply unacceptable. In this case, it is alleged some workers were, for example, paid less than half their owed hourly rates on some Sundays.

“Employers should also be aware that taking action to protect vulnerable workers, like visa holders, is an enduring priority for the Fair Work Ombudsman.

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance. They can do this in their own language.”

The FWO claims that some of the alleged individual underpayments ranged from $33 to $78,787, with 22 employees being underpaid more than $10,000.

The FWO is seeking penalties in court, which, as previously mentioned, will be at the maximum rate; therefore, Navasardyan faces penalties of up to $133,200 per contravention.