Fair Work Ombudsman
Citation: FWO-2025-02-25-krc-penalty-media-release
At a glance
- Respondent
- KRC Pty Ltd
- Penalty
- $28,171
- Employees affected
- 1
What happened
The Fair Work Ombudsman secured penalties against KRC Pty Ltd, which operates The Colonel's Son café in Black Rock, Melbourne, and its manager, Rishi Chaudhari. The company failed to comply with a Compliance Notice regarding underpayments to a full-time cook employed between February 2021 and February 2022. The cook was owed accrued but untaken annual leave entitlements. KRC Pty Ltd back-paid the worker $3,410 after the Fair Work Ombudsman commenced legal action. The Fair Work Ombudsman investigated after a worker requested assistance.
What was decided
The Federal Circuit and Family Court imposed a $23,475 penalty against KRC Pty Ltd and a $4,696 penalty against Rishi Chaudhari for breaching the Fair Work Act. The court found the company’s back-payment was a 'last minute attempt' after legal action commenced. Judge Forbes stated that the payment did not 'wipe the slate clean' due to the worker’s shaken confidence and delayed payment. The penalties are intended to send a 'clear signal' to other employers about the consequences of non-compliance.
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 in addition to back-paying workers. Taking action to improve compliance is a priority for the FWO, particularly in the fast food, restaurants, and cafés sector. Ignoring Compliance Notices is not an acceptable excuse.
What it means for employees
Employees who have concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance. The FWO offers free online courses and tools to help employers and employees understand their rights and obligations.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2025-media-releases/february-2025/20250225-krc-penalty-media-releaseWant more cases like this?
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This summary was drafted by AI 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 →