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A Victorian accounting firm caught providing false payslips to Fair Work inspectors on behalf of a client has now been hit with a court-ordered fine.
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Accounting firm cops fine in accessorial liability case
04 November 2020
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The Federal Circuit Court has ordered Keith Golding & Associates Pty Ltd to pay a $5,000 penalty for its involvement as an accessory for its massage parlour client’s false-records breaches.
The massage parlour operator, Austop Natural Therapy and Supplies Pty Ltd, which formerly operated massage parlours trading as Yin’s Chinese Traditional Massage in Bacchus Marsh and Ballarat, was found to have underpaid a migrant worker $13,522.
The company was found to have underpaid the employee’s minimum hourly rates, overtime rates, weekend and public holiday penalty rates, superannuation and annual leave entitlements. The company also failed to ensure the employee did not work on more than six consecutive days in breach of the award, and failed to issue any payslips.
Fair Work inspectors who were investigating the business were then provided false or misleading records, including payslips created by the accounting firm, Keith Golding & Associates.
Judge Alistair McNab said the underpayments were significant, and the conduct of the accounting firm required deterrence.
“[T]he Fourth Respondent [accounting firm] was providing professional services which in effect encouraged the First Respondent [Austop Natural Therapy and Supplies] to authorise the Fourth Respondent to produce false documents to the Applicant [FWO],” Judge McNab said.
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“I have imposed higher penalties in respect of record keeping and payslip provision contraventions because a failure to comply with those provisions makes it very difficult for an employee to determine what their rate of pay is and whether they are being properly paid.”
The court also ordered penalties of $8,500 be paid by Austop Natural Therapy and Supplies and penalties of $2,800 for the company’s sole director, Yusen Yin, and company secretary, Wenhua Liu.
Fair Work Ombudsman Sandra Parker said the case was a clear signal to accountants that they would be held accountable if found to have facilitated workplace breaches.
“This case also highlights that the Fair Work Ombudsman will use accessorial liability laws to hold professional services firms to account where they are involved in breaching workplace laws,” Ms Parker said.
“Third parties such as accountants should be aware that they can be ordered by a court to pay penalties if found to be involved in contraventions.”
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