The Fair Work Ombudsman has secured a total of $137,435 in penalties in court against a former director and a general manager of Melbourne-based La La Bar Group companies and the companies’ former accounting firm, for deliberately breaching workplace laws.
The Federal Circuit and Family Court has imposed penalties in the amount of:
- $41,368 against Keri Taiaroa, a former director and shareholder of six La La Bar Group companies;
- $26,893 against Matthew Sanger, former general manager of six La La Bar Group companies;
- $34,020 against Nicholas Accounting Management Services Pty Ltd, a Melbourne-based firm that provided services to the eight La La Bar Group companies; and
- $35,154 against Nicholas Accounting Management Services Pty Ltd director Nicholas Nicolaou.
The penalties were imposed after Mr Taiaroa and Mr Sanger admitted they were involved in the record-keeping breaches by six La La Bar Group companies and Nicholas Accounting Management Services admitted failing to comply with a Notice to Produce records. Mr Nicolaou was involved in the failure to comply with Notices to Produce, which were issued to Nicholas Accounting Management Services and eight La La Bar Group companies.
Fair Work Ombudsman Anna Booth said the agency is prepared to take enforcement action against individuals, senior managers and professional services firms where we believe they have been significantly involved in breaches of workplace laws.
“Employers need to be aware that breaching record-keeping laws and failing to comply with lawful requests like Notices to Produce, which were found to be deliberate in this matter, will not be tolerated and risk significant penalties,” Ms Booth said.
“The La La Bar Group was audited in response to intelligence and allegations about non-compliance. We also urge workers with concerns about their wages and entitlements to reach out to us, including via an anonymous report if they prefer.”
The La La Bar Group of companies, that were the focus of surprise audits by Fair Work Inspectors in 2019, included J.D. Chapel Nominees Pty Ltd, Number 17 Pty Ltd, Hotel Boogie Pty Ltd, The Elwood Lounge Pty Ltd, La La Land Australia Pty Ltd, Athina Windsor Nominees Pty Ltd, M.C. Bar Group Pty Ltd and Blue Bar 330 Pty Ltd.
The Fair Work Ombudsman’s legal action also initially involved J.D. Chapel Nominees Pty Ltd for breaching record-keeping laws – but the proceedings were stayed when it went into liquidation in 2022 and penalties were not obtained against the company.
The other seven companies in the La La Bar Group have been placed into liquidation since the 2019 audits.
The 2019 audits found that each of the companies in the La La Bar Group breached the Fair Work Act by failing to make and keep proper records and that Mr Taiaroa and Mr Sanger were involved in the record-keeping breaches by the La La Bar Group companies.
During the investigation, Notices to Produce issued by inspectors to Nicholas Accounting Management Services, and the La La Bar Group companies were not complied with. Mr Nicolaou was involved in the failure to comply with the Notices to Produce.
In imposing the penalties, Judge Heather Riley found that there was a need to deter Mr Taiaroa, Mr Sanger, Nicholas Accounting Management Services and Mr Nicolaou and others from similar future conduct.
Judge Riley described the breaches as “deliberate” and the record-keeping as “grossly inadequate”, noting that the four respondents did not show any “genuine contrition”.
“Like Mr Taiaroa, there is no evidence that Mr Sanger apologised to the people affected most by the contraventions: the employees. His apology appears to me to be formulaic, and designed to minimise the penalty he might receive rather than a genuine expression of remorse,” Judge Riley said.
Judge Riley accepted the FWO’s submission that Nicholas Accounting Management Services “had ample authority to comply with the notice to produce served on it” and rejected the accounting firm’s argument that “the required documents did not exist and that it was not authorised to provide the documents”.
The Fair Work Ombudsman conducted an unannounced visit to Nicholas Accounting Management Services’ office in January 2020 and seized records that the accounting firm had been required to provide under the Notices to Produce.
Judge Riley referred to the FWO’s unannounced site visit, which found “documents that did answer the notice to produce” and that Mr Nicolaou was “totally involved in the breach”.
“There was loss or damage in that Mr Nicolaou’s involvement in the failures to comply with the notices to produce impacted on the FWO’s ability to fulfil its function of investigating workplace conduct,” Judge Riley said.
