The Fair Work Ombudsmen is investigating an unlawful unpaid work experience program.

The authorities have started legal action against Brisbane-based Workforce Solutions and its manager Matthew Micallef.

The company allegedly supplied 10 workers to perform work for clients in manufacturing and warehousing, but paid the workers nothing on the basis that it was ‘work experience’.

The ombudsmen alleges that Workforce Solutions underpaid 10 employees, two of which were just 19 years old, by more than $14,000.

It is also alleged that the company charged its three clients $15 for each hour of low-skilled, manual work, but gave the workers nothing.

The FWO says they met the correct lawful classification of the workers was as employees – meaning they were entitled to minimum hourly wage rates and entitlements.

The ombudsmen claims Workforce Solutions found the workers through ads for paid jobs through website advertisements before telling them they lacked of experience or a job reference, and so claimed they would get the opportunity to gain the experience and reference through the unpaid work.

Reports say Workforce Solutions has since rectified the alleged underpayments, but Fair Work Ombudsman Natalie James said legal action is necessary to prevent other employers from trying to profit by using unlawful unpaid work schemes in a similar way.

Workforce Solutions faces penalties of up to $54,000 per contravention, while Mr Micallef faces a charge of up to $10,800 per contravention.

The FWO also wants the court to force the company to retrospectively audit entitlements owed to any worker involved in their work experience program (which has been running since 2015), and rectify any underpayments identified.

“Unpaid placements or ‘internships’ are legitimate in certain cases – for example, where they are part of an approved program, such as vocational placement related to a course of study,” Ms James said.

“But the law prohibits the exploitation of workers by characterising them as ‘interns’ or as doing ‘work experience’ when they are fulfilling the role of an employee. Such workers must be paid minimum employee entitlements.”