A luxury hotel chain that underpaid more than 1500 cleaners across Australia has been ordered to back pay almost $2 million.
The exploited cleaners, mostly overseas workers, were paid on a "per-room" basis by Oaks Hotels & Resorts, despite being entitled to receive minimum wages and conditions.
On top of missing out on wages and superannuation, the hotel also deducted money from their pay for public liability insurance, chemicals and equipment, administration fees, payroll tax and uniforms.
A Fair Work Ombudsman investigation into cleaning services used by four and five-star hotels found the company and its subsidiary, Housekeepers Pty Ltd, incorrectly paid the workers as independent contractors.
An audit found 1502 cleaners across Oaks' more than 40 Australian hotels were underpaid in the 12 months to August this year.
The hotel agreed to enter an enforceable undertaking with the Ombudsman requiring it to back pay the cleaners $1.9 million as an alternative to court action.
Fair Work Ombudsman Natalie James said vulnerable workers such as those in the cleaning industry were a priority for her agency, and that this case highlighted the result that could be achieved without going through the courts.
Ms James warned employers to improve their supply chains to ensure they were not "turning a blind eye to the impacts on the workers at the bottom."