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A Balmain-based agency faces more than $40,000 in penalties for allegedly underpaying a worker following a Fair Work Ombudsman investigation.
The Fair Work Ombudsman (FWO) has commenced legal action against a Sydney real estate agency and its sole director, who is alleged to have underpaid a junior real estate worker it previously employed.
Facing court will be the Balmain-based agency, Drew and Schofer Real Estate Pty Ltd, and the company’s sole director and shareholder, Graeme Ralph Drew.
A Fair Work inspector issued a compliance notice to Drew and Schofer Real Estate Pty Ltd in December 2022 after forming a belief that it had underpaid an 18-year-old junior real estate worker who was employed on a full-time basis from July to September 2022.
The inspector concluded that the agency had failed to pay the worker’s wages for all except the first few weeks of his employment, nor had they compensated him for his accrued but unused annual leave entitlements at the end of his employment.
On these grounds, FWO alleged that Drew and Schofer Real Estate Pty, without reasonable excuse, failed to comply with the compliance notice requiring them to calculate and back-pay the worker’s entitlements.
The regulator alleged that the worker is still owed $3,440, and that the company’s sole director Drew was involved in the contravention.
The regulator is now seeking penalties in court, with the agency facing a penalty of up to $41,250 and its sole director facing a penalty of up to $8,250, if found guilty.
The regulator is also seeking an order requiring the agency to comply with the previously issued compliance notice, including paying the alleged outstanding amount to the worker plus interest and superannuation.
Fair Work Ombudsman, Anna Booth, said the regulator will continue to enforce workplace laws and take businesses to court when lawful requests are not complied with.
Booth emphasised that “taking action to protect young workers is a priority for the FWO”.
“Where employees do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and make payments to workers,” Booth said.
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