Gold Coast-based ECEC service ordered to back pay educators more than $250,000

A Gold Coast-based early childhood education and care (ECEC) provider has been ordered to back pay workers more than $250,000 and has also received a $45,000 penalty for failing to comply with three Compliance Notices from the Fair Work Ombudsman requiring the back-payment of entitlements. 

The penalties relate to 38 workers employed by the service before the centre closed in 2020. As well as back-paying 37 of the workers a total of $250,290.35 in redundancy entitlements owed to them, the company must also calculate and rectify underpayments to one worker who is owed pay-in-lieu-of-notice-of-termination.

The regulator began an investigation after receiving requests for assistance from workers who were employed at the centre when it closed.

A Fair Work Inspector issued Compliance Notices to the service in February and March 2021 after forming a belief the workers had not been paid all entitlements owed under the National Employment Standards.

Fair Work Ombudsman Sandra Parker said business operators that fail to act on Compliance Notices need to be aware they can face court-imposed penalties on top of having to back-pay workers.

“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker said.

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. An interpreter service is available on 13 14 50.