Melbourne company facing $51K fine after failing to pay compensation

by Chloe Taylor18 Feb 2015
A Melbourne-based organisation is facing a court case for allegedly ignoring a Fair Work Commission (FWC) order to compensate an employee who had been unfairly dismissed.

The Fair Work Ombudsman (FWO) has begun taking legal action against Arlington Catering & Events, who failed to comply with the FWC’s orders from August last year.

Following legal proceedings last year, the FWC ordered the company to pay $15,384 in compensation to a former manager who was found to have been unfairly dismissed after nine years.

The employee complained to the FWO after the compensation was not paid within the required 21 days, but the company still failed to pay the compensation after receiving several requests to do so from the FWO.

“Our inspectors tried to engage with this business to resolve the matter, but were not able to secure co-operation,” said Fair Work Ombudsman Natalie James. “Building a culture of compliance with workplace law is important, and employers should be aware that we are prepared to take action where appropriate.”

The company now faces a maximum penalty of $51,000, and an additional Court Order is being sought by the FWO for the outstanding compensation to be paid.

A directions hearing is due to take place in the Federal Circuit Court in Melbourne tomorrow.

However, this case does not stand alone – a number of FWO litigations are currently alleging breaches of FWC orders to pay unfair dismissal compensation. HC previously reported that the operators of World Sunshine Gym in Melbourne were fined $50,000 for failing to comply with FWC compensation orders.

 
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