Director fined $24,000 over underpayments at "chaotic" Adelaide business

The Fair Work Ombudsman has announced that a Federal Magistrate has described as "chaotic" the manner in which an Adelaide company director ran his business after finding that he had knowingly underpaid staff more than $70,000 in wages and superannuation.

Federal Magistrate Stuart Lindsay imposed a penalty of $24,280 against Adelaide man Andrew Sitarenos, whom he says has had a "singularly unsuccessful career as a small businessman".

The Fair Work Ombudsman prosecuted Mr Sitarenos following an investigation into underpayment of staff at his Wingfield-based poultry processing and retail business, Uncle Tom's Quality Smallgoods.

Legal action against Sitarenos' private company, Melland Pty Ltd, was stayed after it went into liquidation.

Mr Sitarenos admitted that his company underpaid seven staff more than $45,000 in wages - amounts ranging from $143.49 through to $17,354.38.

A further four staff were owed more than $26,000 in unpaid superannuation.