iscover
The Fair Work Ombudsman has secured $7,992 in penalties in court against the former operators of a greengrocer in Melbourne’s east after a breach that affected a young employee.
Penalties were imposed by the Federal Circuit and Family Court against Nilkanth Enterprise, which operated “Strawberry Point” in Forest Hill, after it failed to comply with a compliance notice that required the business to calculate back-pay entitlements for a young worker. The former casual retail assistant was employed with the company from May 2021 to May 2022.
A $6,660 penalty was imposed on the business, while the company’s owner and sole director, Ashvinkumar Mavjibhai Chavan, copped a $1,332 penalty. The director, Chavan, was directly involved in the contravention.
The worker – who hailed from India as an international student at the time – was aged between 21 and 23 during his employment.
The company eventually back paid the worker a total of $5,474; however, this only occurred after the Fair Work Ombudsman commenced their legal action against Nilkanth Enterprise.
Fair Work Ombudsman Anna Booth expressed the need for business operators to understand the repercussions that could arise when companies fail to act on compliance notices, as the penalties they may face in court can be extreme.
“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 penalties and back-pay orders,” Booth said.
“Employers should also be aware that taking action to protect young and migrant workers is among our top priorities. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The young worker who was affected by the breach contacted the Fair Work Ombudsman for support.
Judge Janine Young found that Nilkanth Enterprise and Chavan had “demonstrated a disregard for their obligations”, and there was a need to impose penalties to deter them and other businesses from committing similar contraventions in future.
“There is a need for general deterrence in this matter, to emphasise the importance of an effective compliance framework and at a sufficient level to impress upon other employers the importance of complying with the legal obligations owed to their employees,” said Judge Young.
Failure to comply with a compliance notice has been a common trope in Fair Work Ombudsman’s penalties, with a number of cases previously reported on HR Leader featuring that aspect. If businesses continue to dismiss such notices, the penalties will only become harsher.
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.
