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FWOFair Work Ombudsman · 12 June 2025

Fair Work Ombudsman

Citation: FWO-2025-06-13-cbs-international-litigation-media-release

At a glance

Penalty
$13,294
Employees affected
3
Awards cited
MA000123

What happened

The Fair Work Ombudsman has commenced legal action against CBS International Trading Co. Pty Ltd, a baby formula manufacturer in Dandenong South, Victoria. The investigation began after three full-time employees, including a temporary graduate visa holder, requested assistance. They worked as machine operators between June 2022 and May 2024. Fair Work Inspectors issued Compliance Notices in February and May 2024, alleging underpayment of annual leave entitlements and minimum wages, based on the Food, Beverage and Tobacco Manufacturing Award 2020 and the National Employment Standards. The company allegedly failed to comply with these notices.

What was decided

The Fair Work Ombudsman is seeking penalties against CBS International Trading Co. Pty Ltd for failing to comply with Compliance Notices. The company faces penalties of up to $93,900 per breach. The FWO also seeks an order requiring the company to back-pay the alleged underpayments, including interest and superannuation. The total amount the company was required to pay to comply with the Compliance Notices totalled $13,294, with individual amounts ranging from $3,294 to $6,166. A directions hearing is scheduled for 7 July 2025 in the Federal Circuit and Family Court.

What it means for employers

Employers, particularly those employing temporary visa holders, must ensure compliance with workplace laws and award entitlements. Failure to comply with Compliance Notices can result in significant penalties and court orders for back-payment of wages and superannuation. Understanding and responding appropriately to Compliance Notices is crucial.

What it means for employees

Employees, including those on temporary visas, have the right to receive their full entitlements under the Fair Work Act and relevant awards. If you believe you have been underpaid or your employer has not complied with a Compliance Notice, contact the Fair Work Ombudsman for free advice and assistance.

underpaymentpenalty-ratesgeneral-protectionsvisa-holdersmodern-award-variationcompliance-notice

Every statement above is drawn from the published decision. Read the original here:

https://www.fairwork.gov.au/newsroom/media-releases/2025-media-releases/june-2025/20250613-cbs-international-litigation-media-release

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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 →

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