Fair Work Ombudsman takes legal action against ECEC service operator

The Fair Work Ombudsman has commenced legal action against the operators of a long day care (LDC) service in Sydney’s south west. 

Both the company operating the LDC service and its sole director are facing court following a period of investigation by both the regulatory authority and the Ombudsman.

The regulator investigated after receiving a request for assistance from a worker that the service employed as a full-time early childhood teacher between July 2017 and September 2022.

A Fair Work Inspector issued a Compliance Notice to the company in June 2023 after forming a belief the worker had been underpaid entitlements owed under the Educational Services (Teachers) Award 2010 and 2020 and the Fair Work Act’s National Employment Standards.

The inspector formed a belief the worker was underpaid minimum wages, annual leave entitlements for leave taken and an educational leader allowance, and was not paid accrued but untaken annual leave at the end of her employment.

The Fair Work Ombudsman alleges the company, without a reasonable excuse, failed to comply with the Compliance Notice, which required it to calculate and back-pay the worker’s entitlements. It is alleged the sole director was involved in the contravention.

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.

“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties, and to take steps to comply with a Compliance Notice including calculating and back-paying entitlements,” Ms Booth said.

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”

The FWO is seeking penalties in court. For the alleged failure to comply with the Compliance Notice, the company faces a penalty of up to $46,950 and the sole director faces a penalty of up to $9,390.

The regulator is also seeking a court order requiring the company to comply with the Compliance Notice, including calculating and rectifying any underpayments, plus superannuation and interest.

A directions hearing is listed in the Federal Circuit and Family Court in Sydney on 12 February 2025.

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50. Employees can also seek information from their employer and their union, if they are a union member.