The former operators of a Dandenong South take-away food outlet have been penalised nearly $30,000 over a failure to backpay an underpaid kitchenhand.
The Carers Portland Inc and its secretary Thi Hai Duong Luong (known as Amy Luong), which operated the HCM Café Fresh Q Lunch, were sentenced at the Federal Circuit and Family Court.
The kitchenhand had been working at the café between January and May 2021. The café has since closed.
The Fair Work Ombudsman investigated after a request for assistance from the worker.
The regulator issued a compliance notice to The Carers Portland in December 2021 after forming a belief the worker was underpaid minimum wages, annual leave on termination and pay-in-lieu-of-notice.
The company and Ms Luong failed to comply with the compliance notice requiring them to calculate and back-pay the worker’s entitlements.
Judge Karl Blake found there was a need to impose the penalties to deter The Carers Portland and Ms Luong from future breaches.
Judge Blake also found there was a need to signal to other employers that non-compliance with Compliance Notices will not be tolerated.
“The Compliance Notice framework provides a mechanism for efficient and cost-effective identification and rectification of potential breaches of the Act. It provides an alternative to litigation,” Judge Blake said.
“The effect of this framework will be hindered if recipients of Compliance Notices perceive that there is no meaningful consequence for a failure to comply with a Compliance Notice.”
The Carers Portland was penalised $24,974 and Luong $4950.
An appeal of the case resulted in no change of penalties.
Fair Work Ombudsman Anna Booth said employers that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties.
“When Compliance Notices are not followed, we will continue to take legal action,” Ms Booth said.
“Employers should be aware that improving compliance in the fast food, restaurants and cafés sector is a priority for the Fair Work Ombudsman.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
