Perth security firm Griffon Alpha Group accused of ‘deliberate underpayment’ of workers to tune of almost $1m

The owner of a Perth security company who is accused of deliberately underpaying his workers by almost $1 million will face court next month. The Fair Work Ombudsman has accused Sergey Stanislavovich Navasardyan of “serious contraventions” regarding an underpayment of $911,292 to 44 security guards between December 2019 and May 2022. Mr Navasardyan was the owner and former operator of the now deregistered company Griffon Alpha Group Pty Ltd. The regulator claims the company paid the workers flat rates of $21-$25 per hour regardless of when they performed their duties or the entitlements they were owed. Of the staff affected, 22 workers were allegedly underpaid more than $10,000. In a statement, the Fair Work Ombudsman alleged the workers were employed on a casual basis at various venues including shopping centres, sporting events, concerts, nightclubs and commercial construction sites. Some of the workers were visa holders from non-English speaking backgrounds. More than half of the alleged underpayments relate to Sunday work, for which it is claimed workers were entitled to rates between $49 and $51 per hour. The alleged underpayments range from $33 to $78,787 and include casual loadings, penalty rates for weekend and public holiday work, overtime rates and shift allowances. All alleged underpayments remain unpaid. The regulator detected the alleged wage discrepancy in 2021 when auditing Griffon Alpha Group as part of surprise inspections of security businesses. Mr Navasardyan faces penalties of up to $133,200 per contravention. A directions hearing for the matter is listed in the Federal Circuit and Family Court in Perth for February 11. Under the Fair Work Act, serious contraventions attract 10-times the maximum available penalties that would ordinarily apply. Fair Work Ombudsman Anna Booth said her agency filed 146 litigations against employers of visa holders, and secured nearly $23m in penalties in cases that have included visa holders, in the seven financial years to June 2024. “Employers who allegedly deliberately fail to provide their workers large parts of their lawful wages risk facing significant penalties, which have never been higher,” Ms Booth said. “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.” Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50.