Sydney finance and mortgage-broking company penalised $117k 

The Fair Work Ombudsman has secured a total of $117,190 in penalties in court against the operators of a finance and mortgage-broking company in Sydney.

After failing to back pay three workers and knowingly issuing false and misleading pay slips, The Federal Circuit and Family Court imposed a $97,710 penalty against First Step Finance, based in Pyrmont, Sydney.

A further $19,480 penalty was issued against the company’s sole director and secretary, David Brian Ward.

The FWO investigated after receiving requests for assistance from the affected workers.

The penalties were imposed in response to First Step Finance breaching the Fair Work Act by failing to comply with a total of three compliance notices, which required the company to back pay three workers it had employed in management roles, and knowingly issuing two of the workers false or misleading pay slips. The investigation found that Ward was directly involved in the contraventions.

In addition to the penalties, the court has ordered the company to back pay the workers their outstanding entitlements.

Fair Work Ombudsman Anna Booth once again reminded business operators that failing to comply with a compliance notice will often result in high penalties, as well as having to back pay the workers.

“When compliance notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties and back-pay orders,” said Booth.

Fair Work inspectors issued three compliance notices to the company in August 2021, September 2022 and August 2023 in response to two of the workers being underpaid minimum wages for ordinary hours and all three workers being underpaid accrued but untaken annual leave entitlements owed at the conclusion of their employment. The company had employed the workers between August 2020 and February 2023.

Judge Robert Cameron, who oversaw the case in court, noted that the company had failed to back pay two of the three underpaid employees anything at all, finding that the company and its director, Ward, “have chosen to disregard their obligations in respect of the employees”.

Judge Cameron found that there was a need to impose penalties to deter the company, Ward and other employers from committing similar non-compliance and contraventions in the future.

“Given that the respondents’ failures in that regard are considerable and persistent, it is important that a message be sent to others that such conduct will not go unaddressed by the court,” said Judge Cameron.