The operators of a western Sydney childcare centre have been hit with A$34,650 in penalties after the Federal Circuit and Family Court found they failed to comply with a Fair Work Compliance Notice over a young casual educator’s entitlements.
The court imposed a A$28,875 penalty on The Ella Group (NSW) Pty Ltd, which runs Funtime Childcare in Greenacre, and a A$5,775 penalty on the company’s sole director, Louise Ramona Yaacoubian.
The penalties relate to the company’s failure to act on a Compliance Notice issued in February 2023 requiring it to calculate and back-pay underpayments owed to a worker employed as a casual early childhood educator between November 2019 and April 2022, when she was aged 19 to 22. The court also ordered the business to comply with the notice in full, including calculating and rectifying any underpayments, plus interest and superannuation.
In her judgment, Judge Sophie Given found there was a heightened need to impose penalties to deter future breaches because of the respondents’ “serious and deliberate disregard” for their obligations under the Fair Work Act. She said it was also “important that others be deterred from behaving in a similar manner”, noting that “the employee has still not received the amount owed to her under the Compliance Notice, two years and five months after the date for compliance specified.”
A Fair Work Inspector issued the Compliance Notice after forming a belief the worker had been underpaid casual minimum wages under the Children’s Services Award 2010. The Fair Work Ombudsman investigated after receiving a request for assistance from the affected worker.
Fair Work Ombudsman Anna Booth said companies that failed to act on Compliance Notices could face court-imposed penalties on top of having to back-pay workers. “As the judge in this case described, the employee did not receive the amount owed to her under the Compliance Notice for the duration of her employment, and this took on particular significance as the employee was performing relatively low paid work,” Ms Booth said.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
The watchdog commenced a separate legal action against The Ella Group and Ms Yaacoubian in relation to the same childcare centre earlier this year. That matter remains before the court.
