Fair Work Ombudsman
At a glance
- Melbourne Digital Pty Ltd
- $21,578
- 4
What happened
Melbourne Digital Pty Ltd, an IT company based in Melbourne, and its director Julian Smith have been penalised by the Federal Circuit and Family Court. This followed a Fair Work Ombudsman investigation into underpayment of entitlements to four workers, including software engineers, a user experience designer, and user interface/user experience designers. The workers were employed between one month and just over four months in 2021, and included individuals on temporary visas. The company failed to comply with two Compliance Notices requiring back-payment of wages, superannuation, and interest.
What was decided
The court imposed a penalty of $17,982 against Melbourne Digital Pty Ltd and $3,596 against Julian Smith. The company must now calculate and back-pay outstanding entitlements, estimated at approximately $35,468. The court found the failure to comply with Compliance Notices was serious and warranted a significant penalty. Acting Fair Work Ombudsman Michael Campbell emphasised the consequences of ignoring Compliance Notices. Judge Forbes stated the failure to comply with a statutory notice should be regarded as serious.
What it means for employers
Employers must comply with Compliance Notices issued by the Fair Work Ombudsman. Failure to do so can result in substantial penalties and back-pay orders. Businesses should ensure they understand their obligations regarding minimum wages, annual leave, superannuation, and interest. The Fair Work Ombudsman has resources available to help employers, including a Compliance Notice course.
What it means for employees
Employees, particularly those on temporary visas, 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. Free advice and assistance is available through the Fair Work Infoline and website.
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