Notice mandated employer to back-pay underpaid staff member
A Sydney-based law firm and its director received a combined penalty of $14,400 for their non-compliance to an order mandating them to backpay an underpaid employee.
The Fair Work Ombudsman (FWO) said it secured $12,000 from El Baba Lawyers Pty Ltd and another $2,400 from its director Mona El Baba.
The case stems from the organisation's underpayment of $2,950 to an employee who was hired as a personal assistant/legal secretary between July 2020 and February 2021.
The FWO said it investigated the case after receiving a request for assistance from the affected worker, where it concluded that the employee was underpaid minimum wages.
The Fair Work Inspector issued a Compliance Notice to El Baba Lawyers in March 2021 after coming up with the findings.
The company, however, only back paid the employee 13 months after the Compliance Notice was issued, and after the FWO launched legal action.
Court decision on compliance and underpayment
The Federal Circuit and Family Court imposed the penalties against El Baba Lawyers, ruling that there was "wilful refusal to comply with the Compliance Notice based on an unreasonable belief."
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It also rejected El Baba's submission that she cooperated well with the FWO.
"[El Baba Lawyers] did not comply with the Compliance Notice because of what I have found was an unreasoned and unreasonable belief Ms. El Baba maintained that [El Baba Lawyers] did not owe [the worker] any money on account of his wages," said Judge Nicholas Manousaridis in his ruling.
"Employers should be on notice that their deciding not to comply with a compliance notice on the basis of nothing more than their unreasoned and unreasonable belief that they are not obliged to do so will result in their being met with a significant penalty."
Meanwhile, Fair Work Ombudsman Anna Booth said operators failing to address Compliance Notice may lead to further penalties.
"When Compliance Notices are not followed, we will continue to take legal action. Employers who fail to act on these notices risk substantial penalties and back-pay orders," Both said in a statement.
"Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."