A Melbourne clothing store operator is in court over Compliance Notice failures.
The Fair Work Ombudsman commenced legal action in the Federal Circuit Court against:
- Zurel Pty Ltd, the operator of a clothing store trading as ‘316 Melbourne’,
- and the company’s director, Mr Ban Teik Chee.
Clothing store operator failed to back-pay workers
The regulator alleges the company and Chee failed to comply with a Compliance Notice requiring them to back-pay any outstanding amounts owing to a casual retail employee.
Additionally, the regulator also alleges Zurel and Chee breached record-keeping and pay slip laws.
Investigation launched into clothing store operator after complaints from worker
Fair Work commenced an investigation into Zurel last year, following a complaint from the worker.
The employee, aged in her early 20s, is a visa holder.
The Compliance Notice was issued inspectors formed a belief that the employee had been:
- underpaid her minimum hourly wage,
- casual loading and
- penalty rates for weekend, public holiday and evening work under the General Retail Industry Award 2010.
Fair Work is seeking penalties against Zurel and Chee.
The company faces maximum penalties of $31,500, while Chee faces maximum penalties of $6,300.
Furthermore, the company faces maximum penalties of $63,000 , while Chee faces a maximum penalty of $12,600 for the alleged record keeping breaches.
In addition, the regulator is seeking an order requiring the company to calculate any underpayments and rectify them in full, plus interest.
Fair Work needs to enforce laws
Industrial advocate Miles Heffernan from WAGETHEFT.net.au said he is encouraged by the legal action.
“The Ombudsman’s job is to enforce workplace laws, so it is good to see it following up on these alleged breaches and prosecuting dodgy bosses,” he said.