Cleaning business ordered to clean up its act on staff payments

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A cleaning business based in Ballarat has been penalised by the Federal Circuit Court for having failed to comply with a Compliance Notice issued by the Fair Work Ombudsman to back-pay four of its cleaners.

The Compliance Notice was issued to Kerryn Elizabeth Ainley, who operates the Cleaning Fairy business as a sole trader, in November 2019 after an inspector determined that the employees concerned did not receive the casual loading they were entitled to under the Cleaning Services Award 2010, with the underpayments totalling to $18,603 over an 18-month period.

While it was noted that Ainley eventually back-paid the cleaners, this occurred only after the Fair Work Ombudsman commenced legal action against her and the aforementioned Compliance Notice was only fulfilled on the day of the penalty hearing itself in December 2020.

“We make every effort to secure voluntary compliance with Compliance Notices but where they are not followed, we are prepared to take legal action to ensure workers receive all their lawful entitlements,” Fair Work Ombudsman, Sandra Parker, said.

Judge Heather Riley noted in her decision that it was “fundamental that employers must pay their employees their minimum entitlements”.

“The scourge of the underpayment of low skilled employees, who are not paid very much even when paid correctly, must be overcome,” Judge Riley said. “The breach of the compliance notice was deliberate, in the sense that the respondent was well aware that she had been issued with the compliance notice, it required her to do certain things, and she did not do them.”