The Fair Work Ombudsman has secured $34,650 in penalties in court against the operators of a childcare centre in western Sydney, with a judge criticising the operators for their serious and deliberate disregard for their obligations under the Fair Work Act.
The Federal Circuit and Family Court has imposed a $28,875 penalty against The Ella Group (NSW) Pty Ltd, which operates Funtime Childcare in Greenacre, and a $5,775 penalty against the company's sole director Louise Ramona Yaacoubian.
The penalties were imposed in response to The Ella Group failing to comply with a Compliance Notice, which required it to calculate and back-pay a young worker's entitlements. Ms Yaacoubian was involved in the contravention.
The Compliance Notice required The Ella Group to calculate and rectify underpayments to a young worker the company employed as an early childhood educator on a casual basis between November 2019 and April 2022. The worker was aged 19 to 22 at the time.
In addition to the penalties, the Court ordered The Ella Group to take the actions required by the Compliance Notice, including calculating and rectifying any underpayments, plus interest and superannuation.
The Fair Work Ombudsman commenced a separate legal action against The Ella Group and Ms Yaacoubian in relation to the same childcare centre earlier this year. That matter remains before the court.
Fair Work Ombudsman Anna Booth said companies that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties on top of having to back-pay workers.
"As the judge in this case described, the employee did not receive the amount owed to her under the Compliance Notice for the duration of her employment, and this took on particular significance as the employee was performing relatively low paid work," Ms Booth said.
"The amount owed under the Compliance Notice has still not been paid. When Compliance Notices are not followed, we are prepared to take legal action to ensure workers like this educator receive their full lawful entitlements.
"Employers also need to be aware that taking action to protect young workers is among our top priorities.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
A Fair Work Inspector issued a Compliance Notice to The Ella Group in February 2023 after forming a belief the worker had been underpaid casual minimum wages owed under the Children's Services Award 2010.
In her judgment, Judge Sophie Given found there was a heightened need to impose penalties to deter The Ella Group and Ms Yaacoubian from future breaches because of their "serious and deliberate disregard" for their obligations under the Fair Work Act.
Judge Given said it was also "important that others be deterred from behaving in a similar manner".
Judge Given said that "the employee has still not received the amount owed to her under the Compliance Notice, two years and five months after the date for compliance specified."
The FWO investigated after receiving a request for assistance from the affected worker.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.
