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ARTICLE · 24 FEBRUARY 2013

Non award compliance can really cost small businesses

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The Court sent a warning to small businesses to comply with the minimum entitlements set by awards or risk severe fines.

AustraliaEmployment and HR
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IN BRIEF

The Federal Magistrates Court has issued a very clear warning to small businesses to comply with the minimum entitlements set by awards or risk getting severely fined.

Fair Work Ombudsman v Turbo Cafe Water Gardens Pty Ltd & Anor [2012] FMCA 794 & Fair Work Ombudsman v Turbo Cafe Point Cook Pty Ltd & Anor [2012] FMCA 795

The above decisions concerned a punitive claim taken by the Fair Work Ombudsman against a company and its controlling director ("Turbo Cafes") which operated two takeaway food cafes in Melbourne and that had underpaid just two of its employees for a combined total just above $10,000.

These underpayments related to failure to pay the minimum wages, casual loadings, overtime rates, annual leave and annual leave loadings set by the Fast Food Industry Award 2010, the previous national award and the Fair Work Act 2009.

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