[Australia] Recruitment company penalised by Ombudsman

[Australia] Recruitment company penalised by Ombudsman
21 Nov 2023

In Australia, the Fair Work Ombudsman has secured a total of $39,229 in penalties and back-payment orders in court against a former Gold Coast-based recruitment company and its general manager, Fair Work Ombudsman reports.

The Federal Circuit and Family Court imposed a $25,000 penalty against Back Your Cause Pty Ltd - the company traded as ‘BYC Recruitment’ in Bundall before it ceased operating - and a $5000 penalty against then-general manager, Aaron Murray.

The penalties were reportedly imposed in response to Back Your Cause’s failure to comply with a Compliance Notice requiring it to calculate and back-pay entitlements to a worker it employed as a full-time business development manager between July 2020 and November 2021. Mr Murray was involved in the contravention.

The Court ordered Back Your Cause to make a back payment of $9,229, plus superannuation and interest, in addition to the penalties.

Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices must be aware they can face penalties in court on top of having to back-pay workers.

“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive all their lawful entitlements,” Ms Booth said.

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The FWO reportedly began its investigation after receiving a request for assistance from the affected worker.

A Fair Work Inspector issued a Compliance Notice to Back Your Cause in July 2022 after forming a belief the company had not paid the worker any wages for the final month of work she performed, owed under the National Minimum Wage Order 2021.

In addition, the inspector reportedly formed a belief that the worker was not paid accrued but untaken annual leave entitlements at the end of her employment, owed under the Fair Work Act’s National Employment Standards.

In his penalty judgment, Judge Salvatore Vasta said that the fact that Back Your Cause and Mr Murray “have treated the compliance notice with contempt is a factor where the Court must send a very strong deterrent message”.

“Failing to comply with a Compliance Notice is seen by the Court as a very serious contravention,” Judge Vasta said.

For free advice and assistance about their rights and obligations in the workplace, employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94. An interpreter service is available on 13 14 50.


Source: Fair Work Ombudsman

(Quotes via original reporting)

In Australia, the Fair Work Ombudsman has secured a total of $39,229 in penalties and back-payment orders in court against a former Gold Coast-based recruitment company and its general manager, Fair Work Ombudsman reports.

The Federal Circuit and Family Court imposed a $25,000 penalty against Back Your Cause Pty Ltd - the company traded as ‘BYC Recruitment’ in Bundall before it ceased operating - and a $5000 penalty against then-general manager, Aaron Murray.

The penalties were reportedly imposed in response to Back Your Cause’s failure to comply with a Compliance Notice requiring it to calculate and back-pay entitlements to a worker it employed as a full-time business development manager between July 2020 and November 2021. Mr Murray was involved in the contravention.

The Court ordered Back Your Cause to make a back payment of $9,229, plus superannuation and interest, in addition to the penalties.

Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices must be aware they can face penalties in court on top of having to back-pay workers.

“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive all their lawful entitlements,” Ms Booth said.

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The FWO reportedly began its investigation after receiving a request for assistance from the affected worker.

A Fair Work Inspector issued a Compliance Notice to Back Your Cause in July 2022 after forming a belief the company had not paid the worker any wages for the final month of work she performed, owed under the National Minimum Wage Order 2021.

In addition, the inspector reportedly formed a belief that the worker was not paid accrued but untaken annual leave entitlements at the end of her employment, owed under the Fair Work Act’s National Employment Standards.

In his penalty judgment, Judge Salvatore Vasta said that the fact that Back Your Cause and Mr Murray “have treated the compliance notice with contempt is a factor where the Court must send a very strong deterrent message”.

“Failing to comply with a Compliance Notice is seen by the Court as a very serious contravention,” Judge Vasta said.

For free advice and assistance about their rights and obligations in the workplace, employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94. An interpreter service is available on 13 14 50.


Source: Fair Work Ombudsman

(Quotes via original reporting)

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