Hefty fine for childcare centre as young worker underpaid, notice ignored

A Greenacre childcare centre and its sole director have been penalised by the Fair Work Ombudsman (FWO) after failing to comply with a court order to back pay owed wages a second time.

The Federal Circuit and Family Court has today (31 March) imposed a penalty of $37,560 to The Ella Group (NSW), which operates Funtime Childcare, and a further $7,512 against the company’s sole director, Louise Ramona Yaacoubian, who was involved in the contravention.

According to the FWO, the operator of Funtime Childcare underpaid the young employee, who was engaged as a childhood educator on a full-time basis between April 2021 and May 2023, aged 20 to 22.

A compliance notice, ordering the back payment of any owed payments, as well as interest and superannuation, was not fulfilled.

The notice was issued to The Ella Group in December 2023, after receiving a request for assistance from the affected worker. It was believed that the worker was underpaid in minimum wages, overtime and annual leave entitlements under the Children’s Services Award 2010 and the Fair Work Act’s National Employment Standards.

In response to the failure to comply, a total penalty of $45,072 was applied.

Judge Bernard McCabe said in his judgment that the worker in question had not been paid what she was entitled to over a significant period, adding “that state of affairs is particularly distressing given workers in this industry are not highly paid”.

The parent company and Yaacoubian’s conduct was identified as “contemptuous” of the FWO, with Judge McCabe adding: “That sort of challenge to the authority of the regulator cannot go unanswered lest others be tempted to follow the example.”

As reported last year, the FWO penalised The Ella Group and Yaacoubian $34,650 in September 2025 after determining that Funtime Childcare failed to comply with a compliance notice, in a separate incident regarding the back payment of wages to a similarly young worker.

FWO Anna Booth (pictured) said: “We welcome the court’s findings that the respondents had displayed a serious and deliberate disregard for their legal obligations.

“The consequences are now clear, and these new penalties ordered mean we have secured almost $80,000 in combined penalties against this company and Ms Yaacoubian this financial year.”

The company and its director were also prosecuted by the NSW Department of Education in July 2024 for regulatory breaches regarding the operation of its childcare service.

Judge McCabe said the FWO penalties should deter The Ella Group, Yaacoubian, and other employers from repeating such conduct, concluding: “Significant penalties are appropriate to send a message to other employers that they should respond to compliance notices promptly and in good faith.”

Booth also urged employers to be aware that protecting young workers is among their top priorities, adding: “Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”