13 June 2025

The Fair Work Ombudsman has commenced legal action against a baby formula manufacturing and packaging company based in south-east Melbourne.

Facing court is CBS International Trading Co. Pty Ltd, which has operated a baby formula factory in Dandenong South.

The Fair Work Ombudsman investigated after receiving requests for assistance from three workers the company employed on a full-time basis between June 2022 and May 2024.

One of the workers, a Hong Kong national, was in Australia on a temporary graduate visa at the time.

The workers were employed as machine operators to work on the company’s production line, blending and packaging baby formula products.

Fair Work Inspectors issued Compliance Notices to CBS International Trading Co. Pty Ltd in both February and May, 2024, after forming a belief the company had underpaid the three workers’ annual leave entitlements and had underpaid two of the workers’ minimum wages.

These entitlements were owed under the Food, Beverage and Tobacco Manufacturing Award 2020 and the Fair Work Act’s National Employment Standards.

The Fair Work Ombudsman alleges the company, without a reasonable excuse, failed to comply with the Compliance Notices, which required it to calculate and back-pay the workers’ entitlements.

It is alleged the amounts the company was required to pay to comply with the Compliance Notices totalled $13,294, with individual amounts ranging from $3,294 to $6,166.

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 make payments to workers,” Ms Booth said.

“Employers should also be aware that taking action to protect migrant workers is a priority for the FWO. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The FWO is seeking penalties against CBS International Trading Co. Pty Ltd in court for the alleged failure to comply with two Compliance Notices. The company faces penalties of up to $93,900 per breach.

The regulator is also seeking an order requiring the company to comply with the Compliance Notices, including rectifying any amount owed in full, plus interest and superannuation.

A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 7 July 2025.

The Fair Work Ombudsman filed 146 litigations against employers involving visa holder workers, and secured nearly $23 million in penalties in cases that have included visa holder workers, in the seven financial years to June 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. An interpreter service is available on 13 14 50. Employees can also seek information from their employer or their union, if they are a union member.

The FWO also has an online anonymous report tool, including options to report in languages other than English, and information for migrant workers – including on the protections for visas – is available at our visa holders and migrants webpage.

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.