The Fair Work Ombudsman has secured a penalty in court against the operator of a kitchen installation and manufacturing business in Sydney.
The Federal Circuit and Family Court has imposed a $2,664 penalty against Ramazan Azman, who operates a business based at Concord trading as Award Kitchens.
The penalty was imposed in response to Mr Azman failing to comply with a Compliance Notice requiring the back-payment of entitlements to a worker Mr Azman had employed as a furniture production employee.
Mr Azman fully rectified the underpayment of $21,026.27, plus $1,030.79 in superannuation, only after the Fair Work Ombudsman commenced legal proceedings.
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 investigated after receiving a request for assistance from the affected worker, who performed work for Mr Azman’s business on a full-time basis between July 2018 and August 2020.
A Fair Work Inspector issued a Compliance Notice to Mr Azman in March 2021 after forming a belief the worker was underpaid minimum wages and weekend overtime entitlements under the Timber Industry Award 2010 and did not receive annual leave entitlements on termination as required by the ³Ô¹ÏÍøÕ¾ Employment Standards.
Judge Nicholas Manousaridis found that the delay in the back-payment of entitlements constituted a “significant loss” to the worker and that there was a need to impose a penalty to deter all employers from wilfully disregarding Compliance Notices.
