The Fair Work Ombudsman has secured $21,578 in penalties in court against a Melbourne CBD-based IT company and its director.
The Federal Circuit and Family Court has imposed a penalty of $17,982 against Melbourne Digital Pty Ltd, which operates a business involved in software development, and a $3,596 penalty against its sole director Julian Smith.
The penalties were imposed in response to Melbourne Digital Pty Ltd failing to comply with two Compliance Notices requiring it to calculate and back-pay entitlements to four workers it employed for periods of between one month and just over four months in 2021. The Court found that Mr Smith was involved in the contraventions.
The workers included software engineers, a user experience designer and a user interface/user experience designer. The workers included an Indian national and a Pakistani national, who were on temporary visas.
In addition to the penalties, the Court has ordered Melbourne Digital Pty Ltd to take the actions required by the Compliance Notices, including calculating and back-paying outstanding entitlements, plus superannuation and interest.
The court noted that the Fair Work Ombudsman estimates that the amount owed is approximately $35,468.
Acting Fair Work Ombudsman Michael Campbell said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.
“When Compliance Notices are not followed, we will continue to take legal action. Employers who fail to act on these notices risk substantial penalties and back-pay orders,” Mr Campbell said.
“Taking action to protect migrant workers is one of the Fair Work Ombudsman’s top priorities. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The FWO investigated after receiving requests for assistance from affected workers.
A Fair Work Inspector issued Compliance Notices to Melbourne Digital Pty Ltd in October and November 2021 after forming a belief the company had underpaid workers’ minimum wages under the Miscellaneous Award 2020 and the Professional Employees Award 2020, and annual leave entitlements under the Fair Work Act’s National Employment Standards.
Judge Jonathan Forbes found that the contravention was serious and deserving of a significant penalty to ensure general and specific deterrence.
“The failure to comply with a statutory notice properly issued by the Ombudsman should be regarded as serious”, Judge Forbes said.
