FWO secures $135k in penalties against former auto service operator

The former operator of an automotive service outlet in NSW has been slapped with a hefty $135,000 fine, following an investigation by the FWO and a subsequent court hearing.

Late last week (18 December), the FWO secured a hefty penalty of $135,000 in the Federal Circuit and Family Court against Fajloun Motor Group Pty Ltd, the operator of an Ultra Tune franchise outlet in Yagoona, NSW, before its eventual closure.

Breaches in pay and employment records

An investigation by the FWO commenced after it received a request for assistance regarding underpayment. The worker who made the request was employed at the auto service outlet on a casual basis in an automotive administration role between April 2022 and January 2023.

During the investigation, the visiting Fair Work inspector formed a belief that Fajloun Motor Group Pty Ltd had underpaid the worker minimum wages, casual loading, Saturday penalty rates, and overtime rates, which were owed under the Vehicle Repair, Services and Retail Award 2020.

Resultingly, the inspector issued the operator a compliance notice – requiring it to back pay the worker – which it failed to comply with. It was only after the FWO commenced legal action that the company back paid the worker.

Record keeping: The ‘bedrock’ of compliance

The ombudsman, Anna Booth (pictured), said that employers who fail to act on compliance notices need to be aware that they could face court-imposed penalties on top of the back payments that they are required to make.

The FWO will continue to take legal action following failure to follow compliance notices, until workers receive all their lawful entitlements, Booth said. She added that the FWO will continue to enforce workplace laws, including those that relate to pay slips and record keeping, and will continue to take appropriate action to ensure that laws are complied with.

Booth called record keeping the “bedrock” of compliance, highlighting the importance of the pay slips in providing employees with clarity surrounding their pay.

“We expect every employer to follow laws requiring them to issue pay slips within one working day of each pay day and to make and keep accurate employment records for their employees,” she concluded.