Fair Work Ombudsman
Citation: FWO-2023-06-05-carnarvon-cleaners-penalty-media-release
At a glance
- Respondent
- Carnarvon Cleaners Pty Ltd
- Penalty
- $140,000
- Employees affected
- 35
- Awards cited
- MA000063
What happened
Carnarvon Cleaners Pty Ltd, a contract cleaning company based in Carnarvon, Western Australia, and its sole director and shareholder, Margaret Herlysha Seaton, have been penalized by the Federal Circuit and Family Court. They admitted to underpaying 35 employees a total of $114,538 between November 2017 and November 2018. The employees worked as cleaners, gardeners, and trolley collectors in the Gascoyne region. The company also falsified records when dealing with Fair Work Inspectors. Previous audits in 2010, 2013, and 2014 had already identified underpayment issues.
What was decided
The Federal Circuit and Family Court imposed a $116,550 penalty against Carnarvon Cleaners Pty Ltd and a $23,310 penalty against Margaret Herlysha Seaton. The court found their conduct negligent and careless, noting a repeated failure to pay correct entitlements. The falsification of records was deemed particularly serious. All 35 affected workers have been back-paid. Judge Ladhams emphasized the importance of accurate record-keeping to ensure employee remuneration aligns with minimum standards.
What it means for employers
Employers must address compliance issues identified by the Fair Work Ombudsman, especially after previous warnings. Falsifying records to inspectors is a serious offense with significant consequences. The contract cleaning sector is a priority for the FWO, so employers in this industry should review their pay practices and ensure compliance with the Cleaning Services Award 2010.
What it means for employees
Employees who suspect they are being underpaid or not receiving correct entitlements should contact the Fair Work Ombudsman for free advice and assistance. The FWO provides resources and support for employees, particularly those in the contract cleaning industry.
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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