Former operators of Sydney childcare centre face court over alleged underpayments

The Fair Work Ombudsman (FWO) has commenced legal proceedings against the former operators of a Sydney childcare service over allegations they failed to comply with a Compliance Notice requiring approximately $3,100 in outstanding employee entitlements to be calculated and back-paid.

Sunshine Education Group Pty Ltd, which previously operated Sunshine Early Learning Centres at Five Dock before the service closed in 2025, is facing proceedings in the Federal Circuit and Family Court.

Also facing court is former centre manager Zhigang Wang, also known as James Wang, who also worked as a chef in the service’s kitchen.

The proceedings follow requests for assistance received by the FWO from two workers employed as part-time kitchenhands during separate periods between October 2024 and February 2025.

A Fair Work Inspector issued a Compliance Notice to Sunshine Education Group in October 2025 after forming a belief the company had underpaid entitlements owed to the two workers under the Children’s Services Award 2010 and the National Employment Standards.

The inspector formed a belief the workers had not been paid any wages for their final two to four weeks of employment and had also not received payment for accrued but untaken annual leave when their employment ended.

The Compliance Notice required the company to calculate and back-pay the outstanding entitlements, which the FWO alleges totalled approximately $3,100.

The regulator alleges Sunshine Education Group failed, without reasonable excuse, to comply with the notice.

It also alleges Mr Wang was involved in the failure to comply.

The Fair Work Ombudsman is seeking penalties of up to $99,000 against Sunshine Education Group and up to $19,800 against Mr Wang for the alleged failure to comply with the Compliance Notice.

The regulator is also seeking orders requiring the company to comply with the notice, including calculating and rectifying any outstanding employee entitlements, together with superannuation and interest.

Fair Work Ombudsman Anna Booth said employers that failed to comply with lawful requirements could face court action.

“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.

She also warned that enforcement action may extend beyond the employing entity.

“Individuals, including but not limited to managers, should take note that we can pursue penalties against them for their alleged involvement in breaches.”

A directions hearing is scheduled in the Federal Circuit and Family Court in Sydney on 21 August 2026.

The proceedings highlight the importance for early childhood education and care employers of correctly applying relevant workplace instruments and ensuring employees receive all wages and accrued entitlements when their employment ends.

They also serve as a reminder that Compliance Notices issued by Fair Work Inspectors require action, with potential court proceedings and penalties where employers allegedly fail to comply.

In 2024-25, the FWO secured more than $870,000 in court penalties for failures to comply with Compliance Notices.

The regulator provides employers with guidance on responding to Compliance Notices, alongside tools including its pay calculator and online learning resources.

The FWO has stressed that the proceedings relate to the former operators of Sunshine Early Learning Centres and that no allegations have been made against the operators of the childcare business currently operating at the Five Dock site.

Read the full Fair Work media statement here.