Two small businesses have been penalised by the Fair Work Ombudsman (FWO) for failing to back-pay workers. Both the small pharmacy and grocer failed to comply with Compliance Notices.
The pharmacy, Fremantle Pharmacy in Fremantle, did not pay an employee accrued but untaken annual leave entitlements at the end of his employment. After failing to comply with a 2023 order to calculate and back-pay the worker’s entitlements, the FWO has taken the pharmacy operator, Downings Pty Ltd, to court.
Downings Pty Ltd faces a penalty of almost $47,000, while sole director Joseph Lenny could be penalised up to $9,390.
Meanwhile, an east-Melbourne greengrocer has been fined almost $8000 for failing to calculate and back-pay entitlements owed to a casual retail assistant. The Federal Circuit and Family Court imposed the penalty against Nilkanth Enterprise Pty Ltd, and its sole director Ashvinkumar Mavjibhai Chavan. The small business owner operated ‘Strawberry Point’ in Forest Hill.
The worker was an international student from India, and received $5,474 from Nilkanth Enterprise Pty Ltd only after the FWO commenced legal action.
Ombudsman Anna Booth said that many businesses don’t realise they can be penalised for failing to back-pay workers.
“Employers should also be aware that taking action to protect young and migrant workers is among our top priorities,” said Booth. “Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
In both cases, the affected workers raised the issue with the FWO.
