Fair Work Ombudsman
At a glance
- Niyamat Pty Ltd
- $2,831
- 1
- MA000173
What happened
The Fair Work Ombudsman commenced legal action against Niyamat Pty Ltd, which operated a café/restaurant called Lillies and Lattes in Stawell, Victoria, and its director, Mathew D’Rozario. The action followed a request for assistance from a Sri Lankan worker who was employed as a cook between December 2020 and November 2021. The worker was initially on an international student visa and later transitioned to a graduate student visa. A Fair Work Inspector issued a Compliance Notice in March 2022, alleging underpayment of minimum wages, overtime, and penalty rates. Niyamat failed to comply with the notice, and the Second Respondent was allegedly involved. The eatery ceased operating in 2022.
What was decided
The Federal Circuit and Family Court imposed a penalty of $2830.50 against the Second Respondent for his involvement in Niyamat Pty Ltd’s failure to comply with the Compliance Notice. Niyamat Pty Ltd was placed into liquidation, so a penalty was not obtained against the company. The Fair Work Ombudsman is seeking penalties against Niyamat (up to $33,300) and the Second Respondent (up to $6,660), plus an order to rectify underpayments, interest, and superannuation. A directions hearing is scheduled for July 2023.
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. Businesses need to be aware of the FWO’s focus on protecting vulnerable workers, including visa holders, and ensuring compliance in sectors like fast food, restaurants, and cafes.
What it means for employees
Employees, particularly visa holders, should seek assistance from the Fair Work Ombudsman if they have concerns about their pay or entitlements. The Assurance Protocol protects visa holders who seek help from the FWO without fear of visa cancellation.
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