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The Fair Work Ombudsman has secured penalties against the former operators of a Sydney shoe retailer after they failed to back pay a worker and issue payslips.
Some serious “sole-searching” is in order after the Federal Circuit and Family Court imposed a $60,000 penalty against Winton Jacob International, and $11,500 penalty against the company’s director Winton Guo after failures to back pay a worker and issue payslips was revealed.
The penalties were imposed in a response to Winton Jacob International’s failings to comply with a compliance notice requiring them to calculate back-pay entitlements to a retail worker at stores in Sydney between November 2019 and June 2021.
The company traded as “C de C Shoes”, with stores in both the Sydney CBD and Macquarie Park before they shut down.
A Fair Work inspector issued a compliance notice to the company back in December 2022 as a response to the initial claims that a worker was being underpaid minimum wages, weekend, and public holiday penalty rates, as well as their leave entitlements. These fall under the General Retail Industry Award 2010, the General Retail Industry Award 2020 and the Fair Work Act’s National Employment Standards.
It was revealed that the company’s director, Winton Guo, was involved in the contraventions at hand; hence the $11,500 penalty issued towards him. In addition to the penalties, the court also ordered Winton Jacob International to back pay the worker a total of $15,174, with interest and superannuation included.
In a statement, Fair Work Ombudsman Anna Booth said business operators that fail to act on compliance notices must realise that they can face penalties in court on top of having to reimburse the employee with back pay.
“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 and back-pay orders,” said Booth.
Last week, the Fair Work Ombudsman secured its third-highest-ever penalty of $1.44 million against a coffee franchisor for their “systemic” compliance failure.
Workers were underpaid minimum rates, overtime entitlements, penalty rates for weekends, public holidays and evening work, casual loadings, and a laundry allowance under the same protection laws as the shoe retailer, being the General Retail Industry Award 2010.
As more employment and compliance breaches rise to the surface, the Fair Work Ombudsman is imploring workers to speak up if they are being exploited in any way, shape or form.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance,” said Booth.
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Compliance often refers to a company's and its workers' adherence to corporate rules, laws, and codes of conduct.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
