Adult retail store in court
The Fair Work Ombudsman has commenced legal action against the operators of an adult retail store in Melbourne.
Facing court is Sempha Solutions Pty Ltd, which operates La La Land in Brunswick, and the company’s sole director, Simon Paul Herman.
The regulator investigated after receiving a request for assistance from a young worker Sempha Solutions employed as a store manager on a casual basis between September 2022 and April 2023, when the worker was aged 22 to 23.
A Fair Work Inspector issued a Compliance Notice to Sempha Solutions in October 2023 after forming a belief the worker was underpaid minimum wages, overtime entitlements and penalty rates owed under the General Retail Industry Award 2020.
The Fair Work Ombudsman alleges Sempha Solutions, without reasonable excuse, failed to comply with a Compliance Notice, which required it to calculate and back-pay the worker’s entitlements. It is alleged Mr Herman was involved in the contravention.
Fair Work Ombudsman Anna Booth said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with.
“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and take steps to comply with a Compliance Notice including calculating and back-paying entitlements,” Ms Booth said.
“Employers also need to be aware that taking action to protect young workers is among our top priorities. Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
The FWO is seeking penalties in court. For the alleged failure to comply with the Compliance Notice, Sempha Solutions faces a penalty of up to $46,950 and Mr Herman faces a penalty of up to $9,390.
The regulator is also seeking a court order requiring Sempha Solutions to comply with the Compliance Notice including calculating and rectifying any underpayments, plus interest and superannuation.
A hearing is listed in the Federal Circuit and Family Court in Melbourne on 14 August 2024.
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.
The FWO provides a free online course to help employers understand what a Compliance Notice is and how to respond if they get one. The Compliance Notice course, among a suite of free interactive courses on offer for employers, managers and employees, is available in our online learning centre.
Small businesses can find targeted resources at the Small Business Showcase and information is available for employees and employers at our young workers and students webpages. The minimum pay rates in awards, including the Retail Award, can be found in our pay guides.
