Recruitment firm faces legal action for allegedly underpaying agent

Recruitment agent allegedly underpaid for seven weeks of work

Recruitment firm faces legal action for allegedly underpaying agent

The Fair Work Ombudsman (FWO) has initiated legal action against a New South Wales-based recruitment company and its director over alleged breaches of workplace laws.

The FWO alleges that Growth Executive Talent failed to comply with an issued Compliance Notice, which demanded the company to calculate and back-pay a worker's entitlements. The FWO also claims that its sole director, Brandon Wylie, was involved in the contravention.

The Compliance Notice stems from an investigation into the company after a 22-year-old worker, employed as a full-time recruitment agent from January to March 2023, sought assistance from the FWO claiming he was not paid for seven weeks of work.

A Fair Work Inspector issued the Compliance Notice to the company in August 2023, believing the worker was entitled to minimum wages under the Miscellaneous Award 2020, as well as annual leave entitlements under the Fair Work Act's National Employment Standards. The inspector also found the worker had not received his accrued but untaken leave.

According to the FWO, the recruitment firm allegedly owes the worker $6,446 in unpaid wages, along with $580 in superannuation. It is now seeking an order for the company to pay the alleged outstanding amount to the worker, plus interest.

Penalties sought vs. firm

Additionally, it is seeking penalties in court, with Growth Executive Talent potentially facing a fine of up to $46,950, and Wylie facing a penalty of up to $9,390.

"Where employers do not comply, we will take appropriate action to protect employees," Fair Work Ombudsman Anna Booth said in a statement. "A court can order a business to pay penalties and make payments to workers."

A directions hearing is scheduled for January 29, 2025, in the Federal Circuit and Family Court in Sydney.

This is the second time this week that the FWO took legal action against an organisation for alleged workplace breaches.

It also initiated legal action against the former operator of a Perth security company for allegedly underpaying security guards more than $900,000.