Second-hand watch retailer in court
29 February 2024
This matter was finalised in February 2024 with the Federal Circuit and Family Court imposing a penalty of $2,664 against Mr Middleton for his involvement in Watch Trader Pty Ltd’s failure to comply with the Compliance Notice. A penalty was not obtained against Watch Trader Pty Ltd because the company was placed into liquidation.
The Fair Work Ombudsman has commenced legal action against the operators of a Melbourne-based business that sells second-hand luxury watches.
Facing court is Watch Trader Pty Ltd and sole director Darryl John Middleton.
The regulator investigated after receiving a request for assistance from a worker employed at the business in a sales support role on a part-time basis from June 2020 to January 2021.
A Fair Work Inspector issued a Compliance Notice to the company in May 2021 after forming a belief the worker had not been paid entitlements owed under the General Retail Industry Award 2010, General Retail Industry Award 2020 and the National Employment Standards.
The inspector formed a belief the worker, who was a student visa holder, was underpaid their minimum wages and their accrued but untaken annual leave entitlements on termination of their employment.
The Fair Work Ombudsman alleges Watch Trader, without reasonable excuse, failed to comply with the Compliance Notice, which required the company to calculate and back-pay the worker’s outstanding entitlements.
Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws in a proportionate manner during the COVID-19 pandemic and take business operators 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 in addition to back-paying workers.”
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance,” Ms Parker said.
The FWO is seeking penalties against Watch Trader Pty Ltd and Mr Middleton. The company faces a maximum penalty of up to $33,300, while Mr Middleton faces a maximum penalty of up to $6,660.
The regulator is also seeking an order for the company to comply with the Compliance Notice, which includes rectifying any underpayments in full to the worker, plus interest and superannuation.
A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 3 November 2021.
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.
