The Fair Work Ombudsman has secured a penalty in court against the operator of a chauffeur business in Adelaide.
The Federal Circuit and Family Court has imposed a $4,662 penalty against Mr Barry Ciotti, a sole trader who operates a business trading as Adelaide Chauffeur Company.
The penalty was imposed in response to Mr Ciotti failing to comply with a Compliance Notice requiring the back-payment of entitlements to a worker Mr Ciotti had employed as a chauffeur and ride-share driver.
The Court has also ordered Mr Ciotti take the action required by the Compliance Notice, which includes back-paying the worker in full, plus superannuation and interest.
Fair Work Ombudsman Sandra Parker said business operators that fail to act on Compliance Notices need to be aware they can face court-imposed penalties on top of having to back-pay workers.
“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker said.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The regulator began an investigation after receiving a request for assistance from the affected worker, who Mr Ciotti employed on a casual basis in February and March 2021.
A Fair Work Inspector issued a Compliance Notice to Mr Ciotti in April 2021 after forming a belief the worker was underpaid minimum wages for ordinary hours and casual loading owed under the Passenger Vehicle Transportation Award 2020.
The inspector believed the worker was not paid at all for the hours of work performed in the last two weeks of his employment period.
Judge Stewart Brown found Mr Ciotti had not demonstrated any contrition or cooperation and that there was a need to impose the penalty as a way to deter Mr Ciotti, and others in the passenger transport industry, from underpaying employees.
Judge Brown found there was a need for general deterrence in the passenger transport industry as it falls within a class of “small cottage-type industries, in which employees are isolated from their colleagues and so vulnerable to exploitation through a lack of knowledge.”
