The Fair Work Ombudsman has secured $61,796 in penalties in court against the former operators of a Melbourne café and restaurant business.
The Federal Circuit and Family Court has imposed a $55,003 penalty against P49 Collingwood Pty Ltd, which operated 'Project 49' in Collingwood before it closed, and a $6,793 penalty against the company's sole director, Rocco Esposito.
The penalties were imposed in response to P49 Collingwood Pty Ltd breaching pay slip laws and failing to comply with a Compliance Notice requiring the company to calculate and back-pay entitlements owing to a worker it employed at Project 49 between February 2021 to August 2022.
Mr Esposito was involved in the pay slip contravention.
P49 Collingwood Pty Ltd back-paid most of the worker's entitlements only after the Fair Work Ombudsman commenced legal action - and 15 months after payment was due. The Court has also ordered the company to calculate and pay any outstanding superannuation entitlements.
Fair Work Ombudsman Anna Booth said employers that fail to act on Compliance Notices need to be aware they can face penalties in court in addition to having to back-pay workers.
"When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties, as the company and director in this case have found out," Ms Booth said.
"Employers should also be aware that taking action to improve compliance in the fast food, restaurants and cafes sector is a priority for the FWO. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
The FWO investigated after receiving a request for assistance from the affected worker, who was employed full time by P49 Collingwood Pty Ltd to perform barista, managerial and supervisory duties.
A Fair Work Inspector issued a Compliance Notice to the company in November 2022 after forming a belief that the worker had not been paid any wages in her final two weeks of employment and was not paid her accrued but untaken annual leave entitlements when her employment ended.
The inspector believed these entitlements were owed under the Restaurant Industry Award 2020 and the Fair Work Act's National Employment Standards.
Judge John O'Sullivan found that the contraventions were deliberate and that there was a need to impose penalties to deter P49 Collingwood, Mr Esposito and other employers from similar conduct in future.
"It is necessary and appropriate to impose a penalty that signals non-compliance with statutory notices will not be tolerated. The efficacy of these notices could be undermined if recipients think that a failure to comply has no meaningful consequences," Judge O'Sullivan said.
