Director also penalised for involvement in contravention
The operators of a Sydney-based company have been penalised for failing to back-pay an employee who was owed more than $48,000, according to the Fair Work Ombudsman (FWO).
The Federal Circuit and Family Court imposed a $7,000 penalty against Pure Telecom Pty Ltd., which is trading as "VMCN Solutions" in Willoughby, Sydney.
Its sole director, Steven Joseph Woods, was also penalised with $1,400 for his involvement in the contravention.
The penalties were imposed after Pure Telecom failed to act on a Compliance Order issued in 2022 that required it to calculate and back-pay the entitlements owed to a full-time IT professional between November 2014 and July 2021.
According to a Fair Work Inspector, the IT professional was owed more than $48,000 under the Professional Employees Award 2010 and 2020 and the Fair Work Act's National Employment Standards.
Judge Robert Cameron found that the underpayments were "significant" when compared to the worker's annual salary of $55,000.
Back-payments ordered
According to the FWO, Pure Telecom has begun back-paying the employee through a payment plan but only after the legal proceedings commenced.
As part of the court’s orders, the company is required to back-pay a total of $22,148, plus superannuation, which it has not yet repaid to the employee, according to the FWO.
Fair Work Ombudsman Anna Booth warned that business operators who don't act on Compliance Notices can face penalties on top of back-pay orders.
"When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties and back-pay orders," Booth said in a statement.
