The Fair Work Ombudsman has secured close to $12,000 in penalties in court against the operators of a furniture delivery business in Victoria's Gippsland region.
The Federal Circuit and Family Court imposed $9,990 in penalties against Harris Group Co Pty Ltd, which formerly traded as 'Harris Trucking' in Traralgon, and $1,998 against the company's sole director, Matthew Harris.
The penalties were imposed in response to Harris Group Co Pty Ltd failing to comply with a Compliance Notice relating to a part-time delivery driver who worked for the business between September 2021 and January 2022. Mr Harris was penalised for his involvement in the contravention.
In addition to the penalties, the Court has ordered Harris Group Co Pty Ltd to take the steps the Compliance Notice required - namely, to calculate and pay certain amounts to the worker, including superannuation and interest.
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 pay workers outstanding amounts owed under Compliance Notices.
"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 the need to pay workers amounts required by such notices," Ms Booth said.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
The FWO investigated after receiving a request for assistance from the affected worker.
A Fair Work Inspector issued a Compliance Notice to the company in April 2022 after forming a belief the worker had been underpaid overtime and Saturday penalty rates, owed under the Road Transport and Distribution Award 2020, and annual leave entitlements on termination, owed under the Fair Work Act's National Employment Standards.
In her judgment, Judge Janine Young found that the company's failure to comply with the Compliance Notice was serious and undermined the Fair Work Act's enforcement framework and the safety net of entitlements it is designed to protect.
As a result of Harris Group Co Pty Ltd's failure to comply with the Compliance Notice, the employee had not received amounts owing "almost three years since the date specified in the Notice," Judge Young said.
Her Honour found there was a need to impose penalties to deter the company and other employers from similar contraventions in the future.
"[T]he Respondents have demonstrated a disregard for their obligations under the Act by failing to comply with the Notice, despite being provided with assistance from the FWO and numerous opportunities to take the necessary action to comply," Judge Young said.
