28 June 2023

The Fair Work Ombudsman has secured penalties in Court for a second time against the former operator of an automotive repair and service business in Melbourne for a breach affecting a young apprentice.

The Federal Circuit and Family Court has imposed a $19,980 penalty against C & G Smith Enterprises Pty Ltd, which formerly operated a Rapid Tune franchise outlet in Keysborough.

The penalty was imposed in response to C & G Smith Enterprises failing to comply with a Compliance Notice requiring it to calculate and back-pay entitlements to a young apprentice mechanic it employed between February 2020 and February 2021.

The worker was aged 22 to 23 during the employment period.

In addition to the penalty, the Court has ordered C & G Smith Enterprises to take the steps required by the Compliance Notice, including back-paying the worker in full, plus interest and superannuation.

The penalty comes after C & G Smith Enterprises was penalised $22,200 last year for failing to comply with a Compliance Notice requiring it to back-pay a motor mechanic it had employed.

Fair Work Ombudsman Sandra Parker said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.

“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker said.

“Employers also need to be aware that taking action to protect vulnerable workers, like young workers, continues to be a priority for the FWO. Any employees with concerns about their pay or entitlements should contact the FWO for free assistance.”

The FWO investigated the latest matter after receiving a request for assistance from the affected worker.

A Fair Work Inspector issued a Compliance Notice to C & G Smith Enterprises in October 2021 after forming a belief that the company had underpaid the worker’s minimum wages and overtime rates under the Vehicle Repair, Services and Retail Award 2020 and his annual leave entitlements under the Fair Work Act’s National Employment Standards.

Judge Jonathan Forbes found that C & G Smith Enterprises had shown a “blatant disregard for workplace laws” and the FWO had “every reason to be totally exasperated at the respondent’s failure to engage and its belligerent ‘head in the sand’ response to the statutory compliance scheme”.

“The evidence does not disclose a hint of contrition, corrective action or cooperation. There was no acknowledgement of the Compliance Notice, let alone compliance with it. The respondent did not cooperate with the investigation, nor has it engaged in these proceedings despite being given every opportunity to do so,” Judge Forbes said.

Judge Forbes found that there was a need to impose a penalty to deter C & G Enterprises and other employers from similar conduct in future.

“An important message must be conveyed to employers that a failure to comply with legal obligations will result in the issue of Compliance Notices which, if ignored, will be litigated by the Ombudsman,” Judge Forbes said.

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. An interpreter service is available on 13 14 50.

Small businesses can find targeted resources at the Small Business Showcase.