The Fair Work Ombudsman has commenced legal action against the operator of a disability support services business operating in southern NSW.
Facing court is sole trader Kristy Leanne Tate, the operator of Kreating Real Change Disability Services, based in Crookwell.
The regulator investigated after receiving requests for assistance from two young workers Ms Tate had employed at her business in home care positions.
One worker, then aged 22-23, was employed on a full-time basis between October 2019 and May 2021, and the other, then aged 19-20, was employed on a casual basis between March and June 2021.
A Fair Work Inspector issued a Compliance Notice to Ms Tate in October 2021 after forming a belief the workers had not been paid all entitlements they were owed.
The inspector formed a belief that the full-time employee had been underpaid annual leave entitlements under the Fair Work Act's National Employment Standards and the Social, Community, Home Care and Disability Services Award 2010 and the casual employee had been underpaid weekend penalty rates under the same Award.
The Fair Work Ombudsman alleges Ms Tate, without reasonable excuse, failed to comply with the Compliance Notice, which required her to calculate and back-pay the workers' outstanding entitlements.
Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws and take business operators to court when they fail to act on Compliance Notices.
"Where employers do not comply, we are prepared to take appropriate legal action to ensure employees receive their lawful entitlements. A court can order a business to pay penalties on top of having to back-pay workers," Ms Parker said.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance."
The Fair Work Ombudsman is seeking a penalty against Ms Tate for allegedly failing to comply with the Compliance Notice. She faces a penalty of up to $6,660.
The regulator is also seeking an order for Ms Tate to comply with the Compliance Notice, which includes rectifying the alleged underpayments in full, plus superannuation and interest. A directions hearing is listed in the Federal Circuit and Family Court in Sydney on 22 November 2022.
