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Two businessmen face court accused of short-changing employees.
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FWO takes legal action over staff underpayments
02 June 2022
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The Fair Work Ombudsman has commenced legal action in the Federal Circuit Court against two businesses for underpaying their employees including – in one case – the issuing of false payslips.
The FWO began investigating Tolu Investors Pty Ltd, which operated Spinnakers Brasserie on the NSW Central Coast, after a request for help from a former full-time cook. The worker was originally from Pakistan and did not speak English as a first language.
An inspector formed the belief that the employee, working between March 2018 and June 2021, had been underpaid minimum wages as well as not being paid for 20 hours of personal leave.
A compliance notice requiring the company to back-pay the employee’s entitlements was issued by the FWO to Tolu Investors in November 2021, and the office is seeking penalties against the company for allegedly failing to follow up.
The maximum penalty for a company for failing to comply with a compliance notice is $33,300.
The regulator also seeks an order for Tolu Investors to obey the compliance notice, which includes rectifying underpayments in full, plus interest and superannuation.
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Acting Fair Work Ombudsman Mark Scully said it would enforce workplace laws and take businesses to court where required.
“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties in addition to back-paying workers,” he said.
The second case involves Josef Samuel Neubauer, a sole trader who operated a business trading as City Central Cleaning in Adelaide.
A worker employed as a part-time administration assistant between 29 January and 15 February 2021 requested help and the FWO investigated. The worker was from Brazil and was on a bridging visa at the time.
After forming the belief the worker had not been paid entitlements he was owed under the award, including minimum wages, annual leave entitlements and payment in lieu of notice, a Fair Work inspector issued a compliance notice in July 2021.
The FWO alleges that Mr Neubauer failed to comply with the notice, which required him to calculate and back-pay the worker’s outstanding entitlements and wages. The FWO also alleges that Mr Neubauer issued false payslips to the worker.
The maximum penalty for an individual failing to comply with a compliance notice is $6,600. However, Mr Neubauer also faces a maximum penalty of up to $13,320 for the alleged payslip contravention.
The FWO is seeking a court order for Mr Neubauer to take the action required by the compliance notice, including calculating and rectifying any underpayments in full plus superannuation and interest.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance,” said Mr Scully.
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