Fair Work Ombudsman
Citation: FWO-2023-05-24-rika-foods-second-penalty-media-release
At a glance
- Respondent
- Rika Foods North Melbourne Pty Ltd
- Penalty
- $14,000
- Employees affected
- 1
What happened
Rika Foods North Melbourne Pty Ltd, a former juice and coffee bar in Collingwood, and its director, Radomir Pantovic, failed to pass on $14,400 in JobKeeper payments to a casual employee. A Fair Work Inspector issued a Compliance Notice in November 2021, requiring the company to back-pay the entitlements. This is the second time the company has faced penalties from the Fair Work Ombudsman, following a previous case in 2022 involving a visa holder worker.
What was decided
The Federal Circuit and Family Court imposed a $26,640 penalty against Rika Foods North Melbourne Pty Ltd and a $5,328 penalty against Radomir Pantovic for failing to comply with the Compliance Notice. The Court ordered the company to pay the $14,400 in JobKeeper payments, plus interest, to the worker. The judge found the failure to comply was deliberate and showed no regret. The matter has been referred to the Commissioner of Taxation for investigation.
What it means for employers
Employers must ensure JobKeeper payments and other government-funded schemes are passed on to employees as intended. Failure to comply with Compliance Notices can result in significant penalties and referral to the Commissioner of Taxation. The Fair Work Ombudsman prioritises compliance in the fast food, restaurant, and café sectors.
What it means for employees
Employees should seek assistance from the Fair Work Ombudsman if they believe they have not received their correct entitlements, including JobKeeper payments. Free advice and assistance are available through the Fair Work Infoline.
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https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/may-2023/20230524-rika-foods-second-penalty-media-releaseSend your details to Liquid Employment Lawyers
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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