Fair Work Ombudsman
Citation: FWO-2023-03-31-jl-auto-litigation-media-release
At a glance
- Respondent
- J & L Auto Electrics Pty
- Penalty
- $19,968
- Employees affected
- 1
- Awards cited
- MA000123
What happened
The Fair Work Ombudsman commenced legal action against J & L Auto Electrics Pty Limited, a vehicle repair business based in Bexley, Sydney, and its sole director, the Respondent. The action followed a request for assistance from a worker employed between April 1999 and June 2021. A Fair Work Inspector issued a Compliance Notice in July 2022 after suspecting the worker was underpaid minimum wages, payment-in-lieu-of-notice, and annual leave entitlements under the Vehicle Repair, Services and Retail Award 2020. The company failed to comply with the notice, and is alleged to owe the worker $19,968.20.
What was decided
The Federal Circuit and Family Court issued orders declaring that the Respondent was involved in contravening the Fair Work Act. The action against J & L Auto Electrics Pty Limited was stayed after the company entered liquidation. The Fair Work Ombudsman is seeking penalties against the company and the Respondent for failing to comply with the Compliance Notice. The company faces a penalty of up to $33,300, and the Respondent faces a penalty of up to $6,660. The court may also order the company to rectify the alleged underpayment, plus interest and superannuation.
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 penalties and court orders to back-pay entitlements, plus interest and superannuation. Directors can be held personally liable for breaches.
What it means for employees
Employees who believe they have been underpaid or are concerned about their entitlements should contact the Fair Work Ombudsman for free advice and assistance. Interpreters are available.
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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 →