Sydney business operator fined $18,000 over underpayment of two employees

9 December 2011

The former operator of a Sydney business has been fined $18,000 for underpaying two employees just over $7000.

The penalty - the result of a prosecution by the Fair Work Ombudsman – was imposed in the Federal Magistrates Court in Sydney against Sydney man Ron Baruch.

Baruch formerly operated a business selling online advertising space through his private company Linkwizz Pty Ltd, based in Rockdale.

Federal Magistrate Kenneth Raphael imposed the penalty after finding Baruch breached workplace laws when his business underpaid two sales employees a total of $7060 in 2009.

The penalty imposed was more than 90 per cent of the possible maximum.

Fair Work Ombudsman Nicholas Wilson says the penalty delivered by the Court sends a clear message that underpayment of employees is a serious matter.

The two underpaid employees, both males aged in their 20s, worked for Linkwizz for three weeks, but did not receive any pay.

The employees were each entitled to have been paid $3530 in wages, annual leave entitlements and wages in lieu of notice.

Fair Work inspectors discovered the underpayments when they investigated complaints lodged by the workers.

Linkwizz went into liquidation last year, preventing the Fair Work Ombudsman from prosecuting the company.

Employers or employees seeking assistance should contact the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au A free interpreter service is available on 13 14 50.

Follow the Fair Work Ombudsman on Twitter @fairwork_gov_au external-icon.png.

Media inquiries:

Ryan Pedler, Assistant Director, Media & Stakeholder Relations
(03) 9954 2561, 0411 430 902
ryan.pedler@fwo.gov.au

Want to save this information for later?

If you might need to read this information again, save it for later so you can access it quickly and easily.

pdfButtonLong

Page reference No: 4445