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FWOFair Work Ombudsman · 9 April 2022

Fair Work Ombudsman

Citation: FWO-2022-04-12-kids-academy-penalty-media-release

At a glance

Respondent
Kids Academy Hope Island Pty Ltd
Penalty
$45,000
Employees affected
38

What happened

Kids Academy Hope Island Pty Ltd, formerly operating a Gold Coast childcare centre, has been penalised by the Federal Circuit and Family Court. This followed the company's failure to comply with three Compliance Notices regarding unpaid entitlements. The company employed 38 workers before the centre closed in 2020. Workers requested assistance from the Fair Work Ombudsman regarding their pay and entitlements.

What was decided

The court imposed a $45,000 penalty on Kids Academy Hope Island Pty Ltd for failing to comply with Compliance Notices. The company was ordered to back-pay 37 workers a total of $250,290.35 in redundancy entitlements. They must also rectify underpayments to one worker. Fair Work Ombudsman Sandra Parker emphasised the consequences of ignoring Compliance Notices.

What it means for employers

Employers must comply with Compliance Notices issued by the Fair Work Ombudsman. Failure to do so can result in significant court-imposed penalties and back-payment obligations. Businesses should ensure they understand and fulfil their obligations regarding employee entitlements.

What it means for employees

Employees who have concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance. The Fair Work Infoline is available for support and information.

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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-2022/20220412-kids-academy-penalty-media-release

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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

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