The Fair Work Ombudsman has secured $31,875 in penalties in court against the former operator of a pharmacy in Perth and its director.
The Federal Circuit and Family Court imposed a $28,875 penalty against Downings Pty Ltd, which formerly operated Fremantle Pharmacy in Fremantle, and a $3,000 penalty against the company's sole director and shareholder, Joseph Lenny.
The penalties were imposed in response to Downings Pty Ltd failing to comply with a Compliance Notice requiring it to calculate and back-pay a pharmacist it employed between 2010 and 2023. The Court found that Mr Lenny was involved in the contravention.
The Court has also ordered Downings Pty Ltd to calculate and back-pay the worker's entitlements still owed to him under the Compliance Notice, plus interest and superannuation.
The pharmacist was employed on a full-time basis for most of his employment period before moving to part-time.
Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.
"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 in addition to being ordered to back-pay workers," Ms Booth said.
"Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
The FWO investigated after receiving a request for assistance from the affected worker.
A Fair Work Inspector issued a Compliance Notice to Downings Pty Ltd in August 2023 after forming a belief the worker was not paid accrued but untaken annual leave entitlements owed at the end of his employment under the Fair Work Act's National Employment Standards.
In his judgment, Judge Sandy Street found that the failure to comply with the Compliance Notice was deliberate and that it was appropriate to conclude that the value of the worker's accrued annual leave entitlements was likely to have been significant.
"The Court takes into account that the impact on that particular employee or the failure to comply with the obligation in respect to the accrued annual leave entitlement would have been of considerable significance," Judge Street said.
Judge Street found that there was a need to impose penalties to deter other employers from similar conduct in future.
