Court says failure to comply with such notices 'should be regarded as serious'
A Melbourne-based IT company and its director that allegedly underpaid four employees have been fined nearly $22,000.
The Federal Circuit and Family Court fined Melbourne Digital Pty Ltd a total of $17,982 for failing to comply with two Compliance Notices that ordered it to calculate and back-pay entitlements for the four employees.
Its director, Julian Smith, was also fined with $3,596 for his involvement in the violation, according to the Fair Work Ombudsman (FWO).
Judge Jonathan Forbes said "failure to comply with a statutory notice properly issued by the Ombudsman should be regarded as serious."
Michael Campbell, acting Fair Work Ombudsman, added that employers need to know that they can get penalised for not following Compliance Notices.
"Employers who fail to act on these notices risk substantial penalties and back-pay orders," Campbell said in a statement.
Compliance Notices issued
A Fair Work Inspector issued the Compliance Notices after it believed that four employees of Melbourne Digital were underpaid their minimum wages and annual leave entitlements.
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These employees include a pair of software engineers, a user experience designer, and a user interface/user experience designer who were employed for several months in 2021, according to the FWO.
They are allegedly owed by approximately $35,468, the FWO added. The first Compliance Notice was issued in October 2021, with the second one coming a month later.
The court has since ordered Melbourne Digital to comply with the notices, which ordered it to calculate and back pay outstanding entitlements, plus superannuation and interest, to affected employees.