The Fair Work Ombudsman has secured $12,375 in penalties in court against the operator of a take-away food business in Echuca, regional Victoria, after a failure to comply with a Compliance Notice that related in part to JobKeeper payments.
The Federal Circuit and Family Court has imposed a $10,312.50 penalty against Echuca Kebabs Pty Ltd, which has a registered office of 156 Hare Street in the Echuca town centre, and a $2,062.50 penalty against the company's sole director Zekeriye Bilir.
The penalties were imposed in response to Echuca Kebabs failing to comply with a Compliance Notice, which required the company to calculate and back-pay a worker's entitlements. Mr Bilir was involved in the contravention.
Echuca Kebabs made payments to the worker in respect of the Compliance Notice only after the Fair Work Ombudsman commenced legal action.
Fair Work Ombudsman Anna Booth said employers that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties on top of having to make payments to workers.
"When Compliance Notices are not followed, we will continue to take legal action," Ms Booth said.
"Employers should be aware that improving compliance in the fast food, restaurants and cafés sector is a priority for the Fair Work Ombudsman.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
The Fair Work Ombudsman investigated after receiving a request for assistance from the affected worker, who was employed by Echuca Kebabs between at least 2017 and 2022.
The regulator issued a Compliance Notice to the company in February 2023 after forming a belief the company had received JobKeeper payments from the Australian Taxation Office for the worker in 2020 and 2021 but failed to provide those payments in full to her.
The FWO also formed a belief that the company had underpaid the worker's minimum wages owed under the Fast Food Industry Award 2010 and her annual leave entitlements.
In her judgment, Deputy Chief Judge Patrizia Mercuri found that Echuca Kebabs remained registered and trading and there was a chance it may employ someone in the future.
Her Honour found that the penalties must be set at a level that deterred Echuca Kebabs, Mr Bilir and other employers from similar future breaches.
"[Penalties] must be set at a level which is not just seen as being the cost of doing business," Deputy Chief Judge Mercuri said.
