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The Fair Work Ombudsman (FWO) has commenced legal action against a Melbourne-based tech company and a Sydney childcare centre for underpayment of workers.
Sydney childcare centre
A Sydney childcare company, The Ella Group, operating in Greenacre, is in court after a request was made by a young worker employed by the early childhood educator on a casual basis between November 2019 and April 2022.
The FWO issued a compliance notice to The Ella Group in February 2023 after forming a belief the worker was being underpaid casual minimum wages owed under Children’s Services Award 2010.
Fair Work Ombudsman Anna Booth: “Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties, and to take steps to comply with a compliance notice, including calculating and back paying entitlements.”
The compliance notice required the company to calculate and rightfully back pay the worker’s entitlements. It’s alleged that the company’s sole director, Louise Ramona Yaacoubian, was directly involved in these contraventions.
The FWO is seeking penalties in court for the failure to comply with the notice. The company faces a penalty of up to $41,250, and Yaacoubian faces a penalty of up to $8,250.
A hearing is listed in the Federal Circuit and Family Court in Sydney on 5 September 2024.
Melbourne tech company
Another company facing court for similar charges is 2Cloud Technology, based in Mount Waverley, and the company’s sole director, Canyuan Liao.
This company was investigated also after receiving a request for assistance from a Chinese national employee, on a temporary graduate visa, who was with the company in a full-time IT specialist position between January 2022 and May 2023.
A compliance notice was issued, yet it was not complied with by the company. It is alleged by the FWO that the company and its sole director underpaid the worker’s wages and annual leave entitlements, owed under the National Minimum Wage order and the Fair Work Act’s National Employment Standards.
It is alleged that the amount 2Cloud Technology was required to pay to comply with the compliance notice was $18,418.
However, the majority of this sum of money has not been back paid to the employee.
“Employers also need to be aware that taking action to protect vulnerable workers such as visa holders is a priority for the Fair Work Ombudsman,” said Booth.
Penalties that the FWO are seeking in this case against the company accumulate to $46,950, while the director, Liao, faces a penalty of up to $9,390.
A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 13 August 2024.
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.
