The Fair Work Ombudsman has commenced legal action against a company that formerly operated two Cash Converters stores in Melbourne.
Facing court is Yarraville Business Pty Ltd, which formerly operated Cash Converters stores located in Yarraville and Taylors Lakes.
The regulator investigated after receiving a request for assistance from a worker who had been employed on a full-time basis at the Yarraville store between July 2015 and April 2018 and a full-time basis at the Taylors Lakes store between April 2018 and March 2020.
A Fair Work Inspector issued a Compliance Notice to Yarraville Business Pty Ltd in July 2021, after forming a belief that the worker was paid a flat rate of $21.76 an hour, resulting in the underpayment of his minimum wage rates, overtime rates, annual leave entitlements and penalty rates for public holiday and weekend work.
The inspector believed the worker was covered by the Banking, Finance and Insurance Award 2010 for duties performed at the Yarraville Store and that the General Retail Industry Award 2010 applied to the worker for duties performed at the Taylors Lakes store.
The Fair Work Ombudsman alleges Yarraville Business Pty Ltd, without reasonable excuse, failed to comply with the Compliance Notice, which required it to calculate and back-pay the worker's 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."
Yarraville Business Pty Ltd faces a penalty of up to $33,300 for allegedly failing to comply with the Compliance Notice.
The regulator is also seeking an order for Yarraville Business Pty Ltd to comply with the Compliance Notice, which includes rectifying any underpayments in full, plus interest and superannuation.
A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 11 May 2022.
