Western Sydney childcare operator penalised again over failure to rectify underpayments

A Western Sydney early childhood provider has been penalised for a second time within 12 months, after failing to comply with a legally binding Compliance Notice requiring it to calculate and back-pay an underpaid educator.

The Fair Work Ombudsman (FWO) has secured $45,072 in court-ordered penalties against The Ella Group (NSW) Pty Ltd, which operates Funtime Childcare in Greenacre. The Federal Circuit and Family Court also imposed a $7,512 penalty on the company’s sole director, Louise Ramona Yaacoubian, for her involvement in the contravention.

The penalties relate to underpayments owed to a full-time educator, aged between 20 and 22 at the time of employment, who worked at the service between April 2021 and May 2023.

This latest ruling follows earlier proceedings in September 2025, where the company and its director were penalised $34,650 in relation to the same service, signalling an ongoing pattern of non-compliance.

The matter originated from a worker request for assistance, which prompted an FWO investigation. Inspectors subsequently issued a Compliance Notice in December 2023 after forming a belief that the educator had been underpaid minimum wages, overtime and annual leave entitlements under the Children's Services Award 2010 and the National Employment Standards.

Despite this, the company failed to comply with the notice and did not calculate or rectify the underpayments.

In his judgment, Judge Bernard McCabe described the conduct as demonstrating a “serious and deliberate disregard” for workplace laws. He noted that the educator “remains out of pocket” and emphasised the broader significance of wage compliance in a sector where workers are “not highly paid”.

The Court also described the conduct as “contemptuous” of the regulator, reinforcing that failure to comply with enforcement mechanisms will attract strong judicial response.

Fair Work Ombudsman Anna Booth said the outcome sends a clear message to employers across the sector.

Employers who fail to act on Compliance Notices risk both enforcement action and substantial penalties, she said, noting that the regulator has now secured close to $80,000 in penalties against the company and its director in the current financial year alone.

The FWO has identified young workers as an ongoing priority, particularly in sectors such as early childhood education and care where early career employees may be more vulnerable to underpayment.

Across 2024–25, the regulator secured more than $870,000 in penalties nationally for failures to comply with Compliance Notices, underscoring a continued focus on enforcement.

For approved providers and operators, the case highlights several critical compliance and governance considerations:

• Compliance Notices are enforceable
  These are not advisory documents. Failure to comply can result in litigation and significant financial penalties.
• Young workers remain a priority cohort
  Early career educators, trainees and apprentices continue to be a focus for regulators, increasing scrutiny on employment practices.
• Directors carry personal risk
  The penalties imposed on Ms Yaacoubian reinforce that individuals involved in contraventions may be held personally liable.
• Wage compliance is a governance issue
  Underpayments are often systemic, linked to Award misinterpretation, payroll errors or weak oversight. Regular wage audits and clear internal controls are essential.

The FWO encourages employers to make use of its free tools and resources, including its Pay Calculator, Small Business Showcase and online learning modules, including specific guidance on Compliance Notices.

Employers and employees can also seek advice via the FWO Infoline, as well as through unions and employer associations.

Source:

Fair Work Ombudsman media release, The Ella Group (NSW) Pty Ltd – Compliance Notice penalty.