Servo Operators Hit With Over $233k In Fines For Ripping Off International Student Staff

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Former operators of United Petroleum outlets across Australia have been hit with more than $233,000 in court-ordered fines after the Fair Work Ombudsman uncovered systematic underpayments of international student workers and breaches of basic workplace laws.

A former United Petroleum outlet operator in Adelaide was recently fined a total of $38,500 after the Fair Work Ombudsman (FWO) uncovered underpayments to international student workers.

The Federal Circuit and Family Court imposed a $35,000 penalty on Sai Enterprises Pty Ltd, which formerly operated the United Petroleum outlet at Queenstown, and an additional $3,500 on former site manager Raman Monga.

The penalties followed an FWO investigation that revealed the company failed to pay three employees a total of $2,668 in accrued but untaken annual leave entitlements when their employment ended in 2021—breaches of the Fair Work Act’s National Employment Standards.

All three affected workers were international students who have since been back-paid in full.

No Pay Slips Issued

Investigators also found that Sai Enterprises failed to provide pay slips within one working day of payment and neglected to put written agreements in place for part-time staff—two core obligations under federal workplace law.

Monga was personally penalised for his direct involvement in short-changing two of the workers on their annual leave entitlements and for breaching pay slip laws affecting all three employees.

Fair Work Ombudsman Anna Booth said the case reinforced how essential proper record-keeping and prompt pay slips are for fair work practices.

“All employers have a responsibility to ensure they pay their staff all lawful entitlements and issue them with pay slips – which are essential to workers understanding if they have been paid correctly,” Booth said.

“We expect every employer to follow laws requiring them to provide pay slips within one business day of payment. Employers also need to be aware that protecting migrant workers remains a key priority for the FWO.”

Judge warns against “trifling” treatment of wages

In handing down the penalties, Judge Stewart Brown stressed the need for deterrence, saying the underpayments were “not trifling amounts for the individuals concerned” and that each employee “was compelled to wait a significant time for reimbursement.”

Brown also noted that without the Ombudsman’s broader investigation into United Petroleum outlets, the shortfalls may never have been found.

“Their prompt provision [of pay slips] is essential to ensuring employees know what they have been paid; at what rate; over what period of time—so they can ensure the correctness of what they have been paid,” Judge Brown said.

Nationwide inquiry into fuel chain operators

The case is part of a broader compliance crackdown targeting United Petroleum-branded outlets across the country. The Fair Work Ombudsman initiated audits of 20 stores across South Australia, Victoria, Tasmania, Queensland and New South Wales after widespread concerns about underpayment and non-compliance.

So far, five legal proceedings have been launched against former operators, three of which have reached court decisions.

In February this year, the FWO secured $179,221 in penalties against two United Petroleum outlets in Tasmania. Another case in August saw Brisbane operator Navaneeth Gogikar fined $15,984. One remaining action involving Melbourne operator Bharathi Karnati is still before the courts.

The FWO noted that the present penalties underscore the regulator’s ongoing scrutiny of franchise-style operations with complex employment structures, particularly those that rely heavily on visa holders or casual staff.

International Students Can Contact Fair Work

In the seven financial years to June 2024, Fair Work Ombudsman said it had filed 146 litigations involving visa holder workers and secured nearly $23 million in penalties.

Booth reiterated that migrant workers have the same rights as all other employees in Australia and encouraged anyone with pay or entitlement concerns to come forward.

“Taking action to protect migrant workers is a priority for the Fair Work Ombudsman,” she said. “Anybody with concerns about their entitlements should contact us for free assistance.”