The Fair Work Ombudsman has commenced legal proceedings against former operators of two food retail outlets in Albury, NSW, for allegedly failing to reimburse three employees found to have been underpaid more than $17,000.
Facing court is Barry Scott Distributors Pty Ltd, which formerly operated the Thurgoona Takeaway fish and chip shop and The Rim and Wheel Diner, and its director and owner, Ian Andrews.
This is the second litigation against Barry Scott Distributors and Andrews. Last year it was alleged a further three employees at Thurgoona Takeaway were underpaid more than $60,000 from 2011 to 2012.
The latest proceedings claim a cook employed at Thurgoona Takeaway was underpaid $12,970 between 2011 and 2013.
It also alleges that two cooks at The Rim and Wheel Diner were underpaid a total of $4490 last year, with one staff member allegedly paid nothing for two weeks’ work.
Both businesses have since ceased trading.
Fair Work inspectors discovered the alleged underpayments after being contacted by the former employees.
The Fair Work Ombudsman issued three formal Compliance Notices in January this year requiring the underpayments be rectified in full within 21 days. Despite this, the Fair Work Ombudsman alleges only $400 was reimbursed to one employee in that time.
By law, employers must comply with a Compliance Notice issued by Fair Work inspectors or make a court application for a review if they seek to challenge it.
“In this case, inspectors made extensive efforts to try to resolve the matter by agreement, but were not able to secure sufficient cooperation,” Fair Work Ombudsman Natalie James said.
The Agency is seeking Court Orders for Barry Scott Distributors to pay the employees all entitlements allegedly owed, plus interest.
It also wants Court Orders requiring Andrews to undertake formal training on employer obligations under the Fair Work Act and to provide written, public apologies to his former staff. A directions hearing is scheduled for September 10 in the Federal Circuit Court in Sydney.
Fair Work inspectors identify underpayments at thousands of businesses nationally each year and resolve the vast majority by working cooperatively with employers, guiding them through the back payment process and assisting them to put systems in place to ensure they pay their staff correctly in future.
However, if employers refuse to cooperate, Fair Work inspectors will consider enforcement action, including issuing formal Compliance Notices, which lawfully require employers to take prompt action.
“It is important for employers to understand that when a Compliance Notice is issued, the Fair Work Ombudsman is simply seeking to recover wages that should have been paid in the first instance – we are not seeking to be punitive,” James said.
“Enforcing Compliance Notices is fundamental for maintaining the integrity of Australia’s workplace laws,” James said.
“Fair Work inspectors are increasingly issuing Compliance Notices in cases where employers with contravention issues refuse to cooperate and we will consider follow up action if they are ignored.”
Employers and employees seeking assistance can visit www.fairwork.gov.au or contact the Fair Work Infoline on 13 13 94. A free interpreter service is available by calling 13 14 50.
