The Fair Work Ombudsman has secured a total of $28,171 in penalties in court against the operators of a café in Melbourne's south-east.
The Federal Circuit and Family Court has imposed a $23,475 penalty against KRC Pty Ltd, which operates The Colonel's Son in Black Rock, and a $4,696 penalty against café manager Rishi Chaudhari.
The penalties were imposed in response to KRC Pty Ltd breaching the Fair Work Act by failing to comply with a Compliance Notice requiring it to calculate underpayments and back-pay a full-time cook it employed at the café between February 2021 and February 2022.
Mr Chaudhari was involved in the contravention.
KRC Pty Ltd back-paid the worker $3,410 in entitlements only after the Fair Work Ombudsman commenced legal action.
Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of 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 in addition to back-paying workers," Ms Booth said.
"Employers also need to be aware that taking action to improve compliance in the fast food, restaurants and cafés sector is among our top priorities."
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
The FWO investigated after receiving a request for assistance from the affected worker.
A Fair Work Inspector issued a Compliance Notice to KRC Pty Ltd in August 2023 after forming a belief the company had failed to pay the worker's accrued but untaken annual leave entitlements when her employment ended, owed under the Fair Work Act's National Employment Standards.
In his judgment, Judge Jonathan Forbes found the company only paid the worker her lawful entitlements, almost two years after payment was due, as a "last minute attempt" after being "stunned into action" by the FWO commencing legal proceedings.
Judge Forbes found that even though payment was eventually made to mitigate the worker's loss, it "does not wipe the slate clean".
"The former employee's confidence in employment will have been shaken, she has gone without her entitlements for months and the payment was only made when the writing was on the wall for the respondents," Judge Forbes said.
In imposing the penalties, Judge Forbes said penalties needed to be "sufficiently serious to send a clear signal" to other employers that KRC Pty Ltd and Mr Chaudhari's conduct was "unacceptable".
"When put on notice as to the serious consequences of non-compliance, putting one's head in the sand is no excuse," Judge Forbes said.
