EXCLUSIVE: An embattled accounting boss caught forcing a migrant worker to pay him her wages back in an illegal cash-back scheme is facing further claims, amid calls for authorities to step in.

A Current Affair previously reported KPG Taxation owner Parampreet Singh Rajput did not pay one of his workers, Gagandeep Kaur, a cent during several months of her employment – prompting her to take him to the Federal Court.

Following a damning court ruling in January, other women, who also worked for the same accounting firm, have alleged they also had to pay their wages back or face losing their sponsorship in Australia.

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A Current Affair previously reported KPG Taxation owner Parampreet Singh Rajput did not pay one of his workers. (A Current Affair)

Mother-of-one Sumandeep Kaur, who was previously a dentist in India, told A Current Affair she worked for Rajput’s business for two years and eight months and had to pay back her wages for the duration of her employment.

She left the company in 2021.

“That was a nightmare, it should not happen to anyone,” she said.

“He’s ripping apart everyone.”

Sumandeep provided A Current Affair with her bank statements, which she alleged showed her pay coming in and then cash withdrawals at ATMs.

She claimed that cash was used to pay her boss back.

Mother-of-one Sumandeep Kaur, who was previously a dentist in India, told A Current Affair she worked for Rajput’s business for two years and eight months and had to pay back her wages for the duration of her employment. (A Current Affair)

“I was feeling like I am a burden for my family,” Sumandeep said.

She also claimed she paid her former boss $15,000 for him to sponsor her visa and effectively employ her, before he asked for a further $25,000 for another visa.

A Current Affair is aware of other women who have also detailed experiences with KPG Taxation.

One made a complaint to the Fair Work Ombudsman in 2018 about not being paid, but no action was taken.

Her complaint was not responded to.

A Current Affair sent a series of questions to the Fair Work Ombudsman, including in relation to the 2018 complaint.

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A Current Affair sent a series of detailed questions to the KPG Taxation owner but he did not respond. Instead, his lawyers fired off a legal threat to A Current Affair. (A Current Affair)

It refused to address why it took no action and also declined an on-camera interview.

In a statement, a spokesperson said the Fair Work Ombudsman had a “clear track record of taking action to protect workers, including in relation to any alleged unlawful cashback schemes”.

“Unlawful cash-back schemes can be one of the most blatant and appalling forms of exploitation,” the spokesperson said.

“Migrant workers often have limited knowledge about their workplace rights and entitlements in Australia along with language and cultural barriers to speaking up if something doesn’t seem right.

“They may also have concerns about their visa if they seek help.”

The Tax Practitioners Board, which regulates tax accountants, would not confirm if it launched an investigation into Rajput following the revelations, (A Current Affair)

Lawyer Zana Bytheway, executive director of JobWatch, said authorities needed to step in automatically in cases of blatant abuse.

“Not only are cash-back arrangements unlawful, they are unconscionable,” she said.

“I think that much more needs to be done to prevent this form of exploitation.

“It would be preferable for the Fair Work Ombudsman to step in automatically because the nature of cash-back arrangements involves intentional misconduct.”

Bytheway said that would spare vulnerable workers on visas having to take matters into their own hands by navigating an unfamiliar legal system and pursuing rogue employers through the courts.

Legal experts said cash-back schemes were widespread among businesses that predominately employed migrant workers.

“We urge visa holders and any other employees with concerns about their pay or entitlements to contact the Fair Work Ombudsman for free advice and assistance,” the Fair Work Ombudsman said.

The Tax Practitioners Board, which regulates tax accountants, would not confirm if it launched an investigation into Rajput following the revelations,

A Current Affair sent a series of detailed questions to the KPG Taxation owner but he did not respond.

Instead, his lawyers fired off a legal threat to A Current Affair.

They also sent a legal threat to Gagandeep, who featured in A Current Affair’s first story, criticising her “extraordinary conduct”.

“It is extremely concerning, to put the matter mildly, that your client has sought to wage a collateral attack on my clients in this way via the media,” lawyers for Rajput wrote.

Do you know more? Email reporter Sam Cucchiara at scucchiara@nine.com.au

FULL STATEMENT FROM THE FAIR WORK OMBUDSMAN:

Unlawful cashback schemes can be one of the most blatant and appalling forms of exploitation. The Fair Work Ombudsman has a clear track record of taking action to protect workers, including in relation to any alleged unlawful cashback schemes.

Our media release archive covers Fair Work Ombudsman matters involving high-level compliance and enforcement action.

One matter that may be of interest involved 20 employees who were subclass 457 visa holders and were subjected to an unlawful cashback arrangement under which they were sometimes required to pay back hundreds of dollars from their fortnightly wages: Record penalties of $15.3 million for exploitation of migrant workers at sushi outlets – Fair WorkOmbudsman

Other examples of matters where the FWO has taken employers to court for illegal cashback schemes – or where employees were unreasonably required to spend their own money – include:

Migrant workers often have limited knowledge about their workplace rights and entitlements in Australia along with language and cultural barriers to speaking up if something doesn’t seem right. They may also have concerns about their visa if they seek help.

All employees in Australia, including migrant workers, are entitled to receive – and keep – the minimum lawful entitlements that apply to their employment position, regardless of their visa status. Protections exist for any visas of those who call out exploitation.

Employers need to be aware that taking action to protect vulnerable workers, including visa holders, is among the FairWork Ombudsman’s top priorities.

We urge visa holders and any other employees with concerns about their pay or entitlements to contact the FairWork Ombudsman for free advice and assistance.

The FWO also provides a range of resources and tools that aim to break down barriers and make it as easy as possible for visa holders access the help they need. We encourage visa holders to make use of these, including:

the Fair Work Infoline which can be reached by calling13 13 94, a free interpreter service available on 13 14 50, and an online anonymous reporting tool where concerns can be raised in English or 16 other languages.Tailored information on our website for visa holders and migrants covering basic workplace relations information, including a fact sheet for international students and a step by step process for migrant workers being treated unfairly. This complements the Fair Work Ombudsman’s suite of information and resources available in over 30 languages to help migrant workers understand their workplace rights and obligations in Australia. Details here. These include Videos in 26 languages designed to help visa holders understand workplace rights.There is information on our website about cashback schemes, in which employees are made to unlawfully pay back some of their wages.

FULL STATEMENT FROM TAX PRACTITIONERS BOARD CHAIR PETER DE CURE AM:

The TPB actively investigates allegations of serious misconduct involving tax practitioners.

Generally speaking, these investigations might include issues about unlawful activity, breaches of honesty or integrity, or non-compliance with tax laws.

If a TPB investigation confirms tax adviser misconduct, we will act to protect the public. This might include sanctions to terminate tax agent registration or seeking penalties from the courts.

The TPB cannot comment on specific operations due to confidentiality laws. This also ensures a fair process for all parties.