The Fair Work Ombudsman has secured a $3,500 penalty for the former operator of the Farmers Arms Hotel for breaching the Fair Work Act by failing to comply with a Compliance Notice over employee pay.
FWO inspectors commenced an investigation into the Hotel in Newry, around 200 kilometres east of Melbourne, in 2019 after receiving several requests for assistance from an employee.
A Compliance Notice was issued after an inspector formed the belief the employee had been underpaid minimum wages and penalty rates for weekend, public holiday and evening work, as specified under the Hospitality Industry (General) Award 2010.
The Notice required the company to calculate and back-pay any outstanding amounts owing to the employee, who had been a casual bar attendant and kitchenhand at the Farmers Arms.
Having failed to comply, the Federal Circuit Court has imposed the penalty against Gary Robert Williams, whose now-liquidated company Yorktor P/L ran the Hotel at the time.
In his decision Judge Alister McNab referred to the importance of a general deterrence, due to the compliance record of the accommodation and foodservices industries.
Judge McNab ordered the $3,500 penalties be paid to the former employee.
The FWO warns that companies which fail to act on Compliance Notices face court-imposed penalties on top of having to back-pay underpaid staff.
“We make every effort to secure voluntary compliance with Compliance Notices, but where they are not followed, we are prepared to take legal action to ensure workers receive all their lawful entitlements,” said Acting Fair Work Ombudsman Michael Campbell.
The FWO recommends any employees with concerns about their pay or entitlements contact the department for advice and assistance.