The Fair Work Ombudsman has secured $16,000 in penalties in court against a company that formerly operated two Cash Converters stores in Melbourne.
The Federal Circuit and Family Court has imposed the penalty against Yarraville Business Pty Ltd, which formerly operated Cash Converters stores located in Yarraville and Taylors Lakes.
The penalty was imposed in response to Yarraville Business failing to comply with a Compliance Notice requiring it to calculate and back-pay entitlements owing to a worker it employed on a full-time basis at the Yarraville store between July 2015 and April 2018 and at the Taylors Lakes store between May 2018 and March 2020.
The Court has also ordered the company to take the steps that were required to comply with the Notice, including calculating and paying any outstanding entitlements for a particular period.
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 penalties and back-pay orders," Ms Booth said.
"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.
A Fair Work Inspector issued a Compliance Notice to Yarraville Business Pty Ltd in July 2021, after forming a belief that the worker was paid a flat rate of $21.76 an hour, resulting in the underpayment of his minimum wage rates, overtime rates, annual leave entitlements and penalty rates for public holiday and weekend work.
The inspector believed the worker was covered by the Banking, Finance and Insurance Award 2010 for duties performed at the Yarraville Store and that the General Retail Industry Award 2010 applied to the worker for duties performed at the Taylors Lakes store.
Judge Amanda Mansini found that the failure to comply with the Compliance Notice was serious and deliberate conduct and there was a need to impose a penalty to deter Yarraville Business Pty Ltd and other employers from similar conduct in future.
"In my view, there is a need for general deterrence in this matter, to emphasise the importance of an effective compliance framework and at a sufficient level to impress upon other employers the importance of complying with the legal obligations owed to their employees," Judge Mansini said.
