Baby and children’s retailer in court for underpayments

The Fair Work Ombudsman (FWO) has commenced legal action against a Melbourne retailer of baby and children’s products.

The FWO has investigated Baby & Kids for underpayments, and now, the retailer is facing court. The business has a Baby Direct store in Dandenong and previously operated stores in Ringwood and Hoppers Crossing. It was formerly registered as Baby Direct Hoppers Crossing.

The FWO began investigating the company and its sole director, Qiyun Wang, after receiving a request for assistance from a worker who was employed by the company in a full-time e-commerce role from January to October 2022.

The worker’s role included processing online orders and customer service for Baby Direct’s online shop. The worker was based at the Hoppers Crossing store before working from home full-time.

A Fair Work Inspector issued a compliance notice to Baby & Kids back in March 2023 after forming the belief the worker was owed entitlements under the General Retail Industry Award 2020 and the Fair Work Act’s National Employment Standards.

The inspector formed a belief that Wang and his company did not pay the worker any wages for her final two weeks of work and failed to pay her accrued but untaken annual leave entitlements at the end of her employment.

The kicker is that the FWO alleges Baby & Kids, without a reasonable excuse, failed to comply with the compliance notice, which required it to calculate and back pay the worker’s entitlements.

The FWO alleges that the amount the employer is required to pay under the compliance notice was $4,374, plus super.

Fair Work Ombudsman Anna Booth said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with. Underpayments have been rife across Australia,

“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and make payments to workers,” Booth said.

Going back to the failure to comply with the compliance notice, the FWO is seeking penalties from Baby & Kids of up to $41,250, and Wang faces a penalty of up to $8,250.

The FWO is also seeking an order for the company to pay the alleged amount owing to the employee, plus superannuation and interest.

A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 6 August 2024.

Underpayments have been rife across Australia, and employers must know that the FWO will continue to hold them accountable.