Fair Work Ombudsman v IE Enterprises Pty Ltd
Citation: [2021] FCA 60
At a glance
- Penalty
- $256,000
- Employees affected
- 8
- Awards cited
- MA000191
What happened
IE Enterprises (trading as Uncle Toys) employed eight casual employees at pop-up toy kiosks in Victorian shopping centres from October 2017 to January 2018 during the Christmas season. The company failed to pay minimum rates, superannuation contributions, and failed to keep proper employment records and provide compliant payslips. Employees were underpaid a total of $21,749.19. The sole director, Eyal Israel, was responsible for the company's overall direction and control.
What was decided
The court declared eleven contraventions of the Fair Work Act and General Retail Industry Award 2010, including five serious contraventions. The company was ordered to pay pecuniary penalties of $215,000 and the director was ordered to pay penalties of $41,000. The court emphasised the deliberate and systematic nature of the underpayment conduct which had significant impact on employees.
What it means for employers
Casual workers employed for seasonal work remain entitled to full award rates and superannuation contributions. Directors and senior management are personally liable for company contraventions. Deliberately underpaying casual workers and failing to keep records will result in substantial penalties, even for smaller employers. Penalties for serious contraventions will be higher.
What it means for employees
Casual workers have the same award rate entitlements as permanent workers. Seasonal employment does not reduce your rights to minimum wages or superannuation. If you are a casual employee, the Respondent must still pay superannuation and keep proper records. Seasonal workers in retail must be paid applicable penalty rates for weekend and public holiday work.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2021/2021fca0060Want more cases like this?
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →