A health food retailer based in regional northern New South Wales was penalised $54,264 by the Federal Circuit and Family Court for failing to pay compensation to two unfairly dismissed workers.
The court ordered Rainbow Wholefoods Pty Ltd, which is based in Lismore, to pay $45,288 in penalties and a imposed a further $8976 penalty on company director and shareholder Anthony Stillone.
Rainbow Wholefoods was noted to have unfairly dismissed two workers, a manager and a shop assistant, it had employed since 2015 and 2018 respectively in July 2020.
Upon learning of this action, the Fair Work Commission ordered the company to pay $31,280 compensation to the manager and $19,697.20 compensation to the shop assistant, within three weeks. However, the company failed to pay the dismissed workers, which led to the matter being taken to court.
Rainbow Wholefoods made a partial payment of the compensation earlier this year but still owes the office manager more than $21,000 and the shop assistant more than $9000. In addition to the aforementioned penalties, the Court has ordered Rainbow Wholefoods to pay the remaining compensation that is still owed to the two workers.
Fair Work Ombudsman Sandra Parker said business operators that do not comply with Fair Work Commission orders need to be aware they can face court-imposed penalties on top of having to make any outstanding payments to workers.
“It is fundamental for the integrity of the workplace relations system that orders made by the Fair Work Commission are complied with,” Parker said. “We are prepared to take legal action to hold employers accountable and ensure employees receive compensation they are lawfully entitled to.”
