An instrument-calibration company and its director have been penalised $67,000 for failing to fully back-pay workers and provide documents to inspectors.
The Federal Circuit and Family Court imposed a $56,000 penalty against ABMENG Pty Ltd, a business that was based on the Sunshine Coast and operated nationally, and a $11,000 penalty against its sole director, Jay Parker.
The penalties were imposed after ABMENG failed to comply with a Notice to Produce records and a Compliance Notice requiring it to calculate and back-pay entitlements owing to three workers it had employed in Melbourne and Perth between March and July in 2021.
Mr Parker was involved in the contraventions.
With ABMENG having only partially back-paid the workers after the Fair Work Ombudsman commenced litigation, the court has also ordered the company to back-pay the workers the $12,003 still owed to them, plus superannuation and interest.
ABMENG Pty Ltd operated as ABM (AUS) Pty Ltd when the Fair Work Ombudsman commenced its proceedings in January 2024.
Fair Work Ombudsman Anna Booth said business operators that failed to act on lawful requests needed to be aware they could face penalties in court on top of having to back-pay workers.
“The substantial penalties in this case are welcomed against respondents who have failed to pay the majority of what the three workers were owed more than two years after the Compliance Notice was issued,” she said.
“When Compliance Notices and Notices to Produce are not followed, we are prepared to take legal action to ensure we can fully investigate matters and ensure workers receive their lawful entitlements.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
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The FWO investigated after receiving requests for assistance from the affected workers.
The workers were engaged in full-time customer service, sales and engineering roles.
A Fair Work inspector issued a Compliance Notice to the company in August 2022 in response to the workers being underpaid minimum wages, owed under the Clerks Private Sector Award 2020, Miscellaneous Award 2020 and the Manufacturing and Associated Industries and Occupations Award 2020.
The workers were also not paid their accrued but untaken annual leave entitlements at the end of their employment, owed under the Fair Work Act’s National Employment Standards.
ABMENG also breached the Fair Work Act by failing to comply with a Notice to Produce, which required it to provide documents to the inspector during the investigation.
Judge Allyson Ladhams found the company’s conduct was “serious” and “deliberate”, and that ABMENG’s failure to comply with the Notice to Produce “frustrated” the investigation process.
Judge Ladhams found that there had been “little meaningful action” to back-pay the employees, with 80 per cent of what the workers were owed remaining outstanding more than two years after the Compliance Notice was issued.
“There is a need to ensure that recipients of statutory notices issued by regulators are aware that a failure to comply will not be tolerated and therefore penalties imposed in this matter should be sufficiently high to impress upon other employers the importance of complying with their legal obligations to comply with statutory notices,” Judge Ladhams said.
Judge Ladhams said the penalty needed to provide a “sting or burden”, noting that Mr Parker had had previous involvement in contraventions of workplace laws.
In 2008, the Workplace Ombudsman secured a $10,000 penalty in court against Mr Parker and a $50,000 penalty against a company he was the sole director of, Parker Engineering Corporation (Australia) Pty Ltd, for underpaying workers more than $14,000.
