Fair Work Ombudsman
Citation: FWO-2022-04-01-pagoda-tree-penalty-media-release
At a glance
- Penalty
- $69,552
- Employees affected
- 1
What happened
The Pagoda Tree (Vic) Pty Ltd, a women’s health clinic in Albert Park, Melbourne, and its sole director, Natalie Jade Kringoudis, have been penalised by the Federal Circuit and Family Court. The company withheld government-funded parental leave payments from a Chinese Medicine Practitioner employee who took parental leave in 2018. The clinic received $12,948.30 from the Commonwealth Government’s Paid Parental Leave scheme but failed to pass the full amount to the employee. The employee also experienced underpayment of annual leave, casual loading, and Saturday loadings between 2016 and 2019. The company also breached record-keeping laws.
What was decided
The Federal Circuit and Family Court imposed a $58,590 penalty against The Pagoda Tree (Vic) Pty Ltd and an additional $10,962 penalty against Natalie Jade Kringoudis. The court found that the company director used the parental leave funds for personal expenses. The company eventually paid the outstanding parental leave funds and rectified the underpayments after the Fair Work Ombudsman intervened. Judge McNab emphasised the importance of complying with the Paid Parental Leave Act and the Fair Work Act, stating that employers must not improperly appropriate Commonwealth funds.
What it means for employers
Employers must ensure they correctly handle and pass on government-funded parental leave payments directly to employees as required by law. Misusing these funds for personal expenses is a serious breach with significant financial penalties. Employers also need to maintain accurate records and comply with all Fair Work Act obligations regarding wages and entitlements.
What it means for employees
Employees who are entitled to Paid Parental Leave should monitor whether they receive the full amount of funds. If there are concerns about withheld payments or underpayments, employees should contact the Fair Work Ombudsman for assistance.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2022-media-releases/april-2022/20220401-pagoda-tree-penalty-media-releaseWant more cases like this?
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This summary was drafted by AI 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 →