Townsville Café Owner Penalised $54,000 Over Failure To Pay Unfair Dismissal Compensation

A record penalty has been imposed against the former owner of a café, for ignoring a Fair Work Commission order to compensate an employee who was unfairly dismissed.

The business owner, who formerly owned and ran the café, has been penalised $9000 and his company has been penalised a further $45,000, in the Federal Circuit Court.

The $54,000 in penalties is a record for a Fair Work Ombudsman legal action against an employer for failing to comply with an order to pay unfair dismissal compensation.

The Fair Work Ombudsman reiterated that the Agency is prepared to use every tool at its disposal to ensure legal orders are complied with and justice is served.

The Fair Work Commission made an order requiring the company to pay $6200 compensation to an employee in 2016.

The Commission found the employee had been unfairly dismissed in 2015 after working at the café as an assistant and a manager.

The employee contacted the Fair Work Ombudsman seeking assistance after the compensation amount was not paid.

Fair Work Ombudsman Inspectors made several requests for the former business owner and his company to comply with the Commission’s order - but the former business owner refused to pay the amount ordered by the Commission, advising an Inspector that the worker would “get nothing out of me”.

The former business owner and his company paid the worker the outstanding unfair dismissal compensation owing to her only after the Fair Work Ombudsman commenced legal action.

The Fair Work Ombudsman has commenced legal action against several employers over the past six years for failing to pay unfair dismissal compensation ordered by the Fair Work Commission.

The previous largest penalties of nearly $50,000 were secured against a Melbourne based company and its director in 2014 for failing to pay $2200 compensation.

Are you finding it difficult to comply with Fair Work requirements?
ISOsafe offer Fair Work support to businesses Australia-wide. One of our Specialists will visit your workplace to review your processes and documents. Based on this, we will provide you with advice, compliance documents, training and a detailed report containing areas for improvement. Call ISOsafe today on 1300 789 132.