The Fair Work Ombudsman has secured a total of $117,190 in penalties in court against the operators of a finance and mortgage-broking company in Sydney, after they failed to back-pay three workers and knowingly issued false or misleading pay slips.
The Federal Circuit and Family Court has imposed a $97,710 penalty against First Step Finance Pty Ltd, based in Pyrmont, and a $19,480 penalty against the company's sole director and secretary, David Brian Ward.
The penalties were imposed in response to First Step Finance breaching the Fair Work Act by failing to comply with three Compliance Notices requiring it to back-pay three workers it had employed in management roles and knowingly issuing two of the workers false or misleading pay slips.
Mr Ward was involved in the contraventions.
In addition to the penalties, the Court has ordered First Step Finance to back-pay the workers their outstanding entitlements.
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 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 requests for assistance from the affected workers.
Fair Work Inspectors issued Compliance Notices to the company in August 2021, September 2022 and August 2023 in response to two of the workers being underpaid minimum wages for ordinary hours and all three workers being underpaid accrued but untaken annual leave entitlements owed at the end of their employment.
These were owed under the Banking, Finance and Insurance Award 2020, the National Minimum Wage Order 2022 and the Fair Work Act's National Employment Standards.
The company had employed the workers between August 2020 and February 2023.
Judge Robert Cameron noted that First Step Finance had failed to back-pay two of the three underpaid employees anything at all, finding that the company and Mr Ward "have chosen to disregard their obligations in respect of the employees".
Judge Cameron found that there was a need to impose penalties to deter the company, Mr Ward and other employers from similar non-compliance in future.
"Given that the respondents' failures in that regard are considerable and persistent, it is important that a message be sent to others that such conduct will not go unaddressed by the Court," Judge Cameron said.
