The Fair Work Ombudsman has secured a total of $7,200 in penalties in court against a road transport company in south-west Sydney and one of its directors.
The Federal Circuit and Family Court has imposed a $6,000 penalty against KTM Express (NSW) Pty Ltd, based in the Macarthur Region, and a $1,200 penalty against company director Teresa Mamone.
The penalties were imposed in response to KTM Express (NSW) Pty Ltd breaching the Fair Work Act by failing to comply with a Compliance Notice requiring it to back-pay a worker it employed as a full-time truck driver between November 2018 and March 2021.
Ms Mamone was involved in the contravention.
KTM Express (NSW) Pty Ltd back-paid the worker $30,321 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.
"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 the company in March 2022 in response to the worker being underpaid meal allowances, overtime rates and penalty rates for working early and on public holidays, owed under the Road Transport and Distribution Award 2010 and Road Transport and Distribution Award 2020.
Judge Robert Cameron found that there was a need to impose penalties to deter other employers from similar non-compliance in the future.
"The road transport industry is a large industry and its participants should not think that Compliance Notices can be put in a drawer and ignored as KTM appears metaphorically to have done," Judge Cameron said.
