Sydney childcare centre operators penalised for failing to comply with compliance notice

The Fair Work Ombudsman (FWO) has secured $34,650 in penalties against the operators of a western Sydney childcare centre after they failed to comply with a Compliance Notice relating to a young casual educator’s underpayments.

The Federal Circuit and Family Court ordered a $28,875 penalty against The Ella Group (NSW) Pty Ltd, which operates Funtime Childcare in Greenacre, and a $5,775 penalty against sole director Louise Ramona Yaacoubian. The Court also ordered the company to calculate and rectify any underpayments, with interest and superannuation. 

The Compliance Notice, issued in February 2023, required the company to address alleged underpayments of casual minimum wages owed under the Children’s Services Award 2010 to a worker employed between November 2019 and April 2022, when the worker was aged 19 to 22.

In her judgment, Judge Sophie Given found a heightened need to impose penalties to deter future non-compliance, citing the operators’ “serious and deliberate disregard” for their obligations under the Fair Work Act and noting the continued non-payment of the amount owed two years and five months after the compliance date. 

Fair Work Ombudsman Anna Booth said employers who fail to act on Compliance Notices risk court-imposed penalties in addition to back-pay liabilities. She emphasised the priority of protecting young workers and encouraged any employees with concerns about pay or entitlements to contact the FWO for assistance.

The FWO confirmed a separate legal action against The Ella Group and Ms Yaacoubian, in relation to the same centre, remains before the court. 

The decision highlights the importance for approved providers and centre managers to respond promptly to Compliance Notices and to ensure correct application of award conditions for casual educators, including those covered by the Children’s Services Award 2010. Services seeking guidance can access FWO tools, including an online Compliance Notice course and award calculators. 

Read the full Fair Work Ombudsman media release here.